Globant Acquires Blankfactor to Strengthen Its Payments, Banking, and Capital Markets Practice in the US

Rhea-AI Summary

Globant (NYSE: GLOB) has announced a definitive agreement to acquire Blankfactor, a U.S.-based IT services consulting firm specializing in Payments, Banking, and Capital Markets. Blankfactor, founded in 2016, has grown rapidly by delivering consulting-led product engineering, data engineering, and enterprise AI solutions to major financial institutions. With over 450 technology professionals across the U.S., U.K., Colombia, Romania, and Bulgaria, Blankfactor brings expertise in card issuing, merchant acquiring, and securities finance.

The acquisition aims to strengthen Globant's Payments Studio in North America and expand its capabilities in the financial services sector. Blankfactor's founders, Michael Wear and Melody Pak, will continue to lead the company post-acquisition. The transaction is subject to customary closing conditions and regulatory approvals.

Positive

• Acquisition strengthens Globant's presence in the lucrative Payments, Banking, and Capital Markets sectors
• Blankfactor brings expertise in card issuing, merchant acquiring, and securities finance
• Addition of 450+ technology professionals with specialized skills
• Expands Globant's client base, including six of the top ten payment processors
• Enhances Globant's cloud ecosystem expertise (AWS, Google Cloud, Microsoft Azure, Snowflake, Databricks)

Negative

• Acquisition costs and potential integration challenges not disclosed
• Regulatory approval still pending, which could delay or impact the deal

Blankfactor is a U.S.-headquartered product engineering firm specialized in Payments, Capital Markets, Wealth and Retirement, and Fintech in North America and the UK, with extensive experience in card issuing, merchant acquiring, and securities finance.

Blankfactor has grown rapidly by leveraging highly specialized consultants coupled with deep vertical expertise in the financial services sector. The company also holds extensive expertise in AWS, Google Cloud, Microsoft Azure, Snowflake, and Databricks

MIAMI, Sept. 10, 2024 /PRNewswire/ -- Globant (NYSE: GLOB), a digitally native technology services company, announced today that it has entered into a definitive agreement to acquire Blankfactor, a U.S. based IT services consulting firm specialized in Payments, Banking, and Capital Markets with a successful track record across the Financial Services industry and extensive experience in card issuing, merchant acquiring, and securities finance. The company specializes in delivering consulting-led product engineering, data engineering, and enterprise AI solutions. Completion of this transaction is subject to customary closing conditions including regulatory approvals.

 

Founded by Michael Wear and Melody Pak, Blankfactor has grown rapidly since its kick-off in 2016 through strategy-led product engineering with deep vertical knowledge. Blankfactor also holds profound expertise within the cloud ecosystem with AWS, Google Cloud, Microsoft Azure, Snowflake, and Databricks. Leveraging its effective balance of U.S. and Global delivery, the company currently develops solutions for some of the strongest brands in the financial sector, including six out of the top ten payment processors and many of the world's largest banks and asset managers.

Headquartered in Miami, Blankfactor's offices in the U.S., U.K., Colombia, Romania, and Bulgaria are home to more than 450 technology professionals with talent ranging from COBOL to AI. Blankfactor's speciality is in outcome-based delivery, and its consultant-engineers are subject matter experts who offer both domain expertise and the hands-on execution necessary to deliver business-critical solutions.

"Blankfactor brings incredible experiences and best practices within the financial services space, which is a key vertical for Globant. As AI develops and impacts industries, we want to expand Globant's visions and knowledge in order to provide a continuously evolving service to our clients," said Martin Migoya, Co-Founder and CEO of Globant.

"I have always admired Globant as a model of execution at scale in digital transformation, with exceptional talent around the world. With the scale and depth of Globant, I'm looking forward to achieving greater outcomes for our clients," said Michael Wear, Founder and CEO of Blankfactor.

"Blankfactor is a great organization with world-class clients and has an exceptional track record, delivering specialized value propositions in a crucial industry for our corporate roadmap. They join Globant to consolidate the Payments Studio in North America at a special moment when the Financial Services industry is undergoing a massive reinvention," said Nicolás Kaplun, Chief Business Officer of Globant in North America.

"Blankfactor's consulting-led engineering capabilities, combined with Globant's scale and breadth of services, delivers a winning combination for our current and future clients," said Asif Ramji, Chairman of Blankfactor.

"We are thrilled to welcome such a talented group of professionals with the passion and capability to dream as big as Globers do. They are a perfect fit for our current expansion strategy," said Martin Umaran, Co-Founder and Chief Corporate Development Officer of Globant.

Company founders Michael Wear and Melody Pak will continue at the helm, and Blankfactor management and their respective teams look forward to supercharging their scale and impact with Globant, while remaining true to Blankfactor's singular focus on consulting-led digital execution for the financial services industry.

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About Globant

At Globant, we create the digitally-native products that people love. We bridge the gap between businesses and consumers through technology and creativity, leveraging our experience as an AI powerhouse. We dare to digitally transform organizations and strive to delight their customers.

• We have more than 29,100 employees and are present in 33 countries across 5 continents, working for companies like Google, Electronic Arts, and Santander, among others.
• We were named a Worldwide Leader in AI Services (2023) and a Worldwide Leader in CX Improvement Services (2020) by IDC MarketScape report.
• We are the fastest-growing IT brand and the 5th strongest IT brand globally (2024), according to Brand Finance.
• We were featured as a business case study at Harvard, MIT, and Stanford.
• We are active members of The Green Software Foundation (GSF) and the Cybersecurity Tech Accord.

Contact: pr@globant.com
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This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The expectations related to the businesses of Globant and Blankfactor may differ from their actual results and consequently, you should not rely on these forward looking statements as predictions of future events. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "will", "estimate," "continue," "anticipate," "intend," "should," "plan," "expect," "predict," "potential," or the negative of these terms or other similar expressions. These forward-looking statements include, without limitation, expectations with respect to the anticipated benefits of the proposed acquisition. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside of the control of Globant and Blankfactor and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the ability of the parties to complete the proposed acquisition; (2) the risk that the conditions to the closing of the acquisition are not satisfied in a timely manner or at all, (3) the risk that disruption from the transaction materially and adversely affects Blankfactor's business and operations; (4) restrictions during the pendency of the transaction that impact Blankfactor's ability to pursue certain business opportunities or other strategic transactions; (5) Globant's ability to recognize the anticipated benefits of the proposed acquisition, (6) costs related to the proposed acquisition, (7) Globant's ability to successfully grow Blankfactor's business; (8) potential adverse reactions or changes to business relationships resulting from the announcement, pendency or completion of the proposed acquisition; (9) the ability of Globant to retain and hire key Blankfactor  employees; (10) changes in applicable laws or regulations, (11) the demand for Blankfactor's services together with the possibility that Blankfactor may be adversely affected by other economic, business, and/or competitive factors; and (12) other factors discussed under the heading "Risk Factors" in our most recent Form 20-F filed with the Securities and Exchange Commission and any other risk factors included in subsequent reports on Form 6-K. Because of these uncertainties, you should not make any investment decision based on these forward-looking statements. Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise.

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SOURCE GLOBANT

FAQ

What is the purpose of Globant's acquisition of Blankfactor?

Globant (NYSE: GLOB) is acquiring Blankfactor to strengthen its Payments, Banking, and Capital Markets practice in the US, expand its capabilities in financial services, and enhance its consulting-led product engineering offerings.

How many employees does Blankfactor have and where are they located?

Blankfactor has over 450 technology professionals located across offices in the U.S., U.K., Colombia, Romania, and Bulgaria.

What specific expertise does Blankfactor bring to Globant (GLOB)?

Blankfactor brings expertise in card issuing, merchant acquiring, securities finance, and deep knowledge of cloud ecosystems including AWS, Google Cloud, Microsoft Azure, Snowflake, and Databricks.

Will Blankfactor's leadership change after the acquisition by Globant (GLOB)?

No, Blankfactor's founders Michael Wear and Melody Pak will continue to lead the company after the acquisition by Globant.

What is the current status of the acquisition of Blankfactor by Globant (GLOB)?

Globant has entered into a definitive agreement to acquire Blankfactor, but the transaction is still subject to customary closing conditions and regulatory approvals.