NEWTOWN, Pa. – EPAM Systems, Inc. (NYSE: EPAM), a prominent provider of digital transformation services, has announced the acquisition of Vates S.A., a renowned software development firm with a strong presence in Argentina and Chile. This strategic move aims to enhance EPAM's service offerings in cloud, engineering, testing, and digital services, while expanding its footprint in the Latin American market.
Vates, known for its comprehensive solutions across various industries such as finance, healthcare, and telecommunications, brings to EPAM a wealth of experience and a team of over 500 skilled engineers. The integration is expected to bolster EPAM's engineering capabilities, particularly in cloud services and application testing.
Hugo Gomez, Vice President of Latin America at EPAM, expressed enthusiasm about the acquisition, highlighting the alignment of Vates' engineering prowess with EPAM's approach to accelerating digital transformation for global brands. The addition of Vates is anticipated to not only enhance service delivery for clients but also create new opportunities for technical talent in the region.
EPAM's expansion in Latin America includes recent office openings in Colombia and the acquisition of S4N, a Colombian firm. These efforts have contributed to EPAM's recognition as a preferred employer and an award-winning workplace in various global locations.
Mario Barra, Co-Founder of Vates, remarked on the synergies between the two companies, emphasizing their shared commitment to delivering advanced technology solutions to clients on a larger scale.
The acquisition is part of EPAM's ongoing strategy to address complex technological challenges through advanced digital services.
The information in this article is based on a press release statement from EPAM Systems, Inc.
InvestingPro Insights
In light of EPAM Systems' recent acquisition of Vates S.A., a look at the company's financial health and market performance offers valuable context. EPAM Systems currently holds a market capitalization of $15.61 billion and is trading at a high earnings multiple with a P/E ratio of 37.4, reflecting investor confidence in its growth prospects. This valuation is supported by the company's strong balance sheet, as it holds more cash than debt, which is a positive sign for stakeholders considering the financial stability of the company.
Despite recent challenges indicated by a slight decline in revenue growth last quarter, EPAM has proven to be profitable over the last twelve months, with a gross profit margin of 31.01%. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a robust financial position to support ongoing operations and strategic initiatives like the Vates acquisition.
It's also worth noting that EPAM's stock has experienced a significant drop over the last week, which could present a buying opportunity for investors who are bullish on the company's long-term strategy and market position. Analysts predict EPAM will remain profitable this year, which may provide a foundation for recovery in the stock's performance.
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