February 07, 2017
Last month we broke the news that, Sympla, Brazil’s leading Do-It-Yourself (DIY) ticketing and event management platform acquired Eventick, Brazil’s second largest DIY ticketing platform. The move consolidates Sympla’s leadership in the market and expands the company’s territorial reach. It also reinforces its presence in major capitals such as São Paulo, Rio de Janeiro and Recife. Full article here. We caught up with CEO of Sympla Rodrigo Cartacho to find out what happened behind the scenes to make this acquisition possible.
What were some of the reasons behind the decision to make this acquisition and how did the process start?
We are constantly looking for opportunities to expand Sympla’s leadership and take our unique ticketing experience to more event organizers and consumers. Acquiring Eventick was a natural move in that sense. We had known them for a while, had some clients in common and six months ago we started a close conversation, which made us realize we share great affinity. Together we’ll be able to reach even more cities and reinforce our presence in major capitals in northeastern Brazil, like Recife, where Eventick started.
How did you communicate it internally to your organization? (How early on was it discussed, what was the reaction)
As soon as the deal was signed last December, we gathered the whole team at our headquarters in Belo Horizonte and broadcasted it online to all other offices in Brazil telling the news. The reaction couldn't be different. Everyone was very excited and proud to be part of this special moment in the history of our company and our market.
What does the integration look like? How are you integrating their technology and are you keeping any/all staff?
The integration will be very gradual and nothing will change in the beginning. We are already one team working together, but both platforms will continue to operate in parallel for a while. In the future, we will gradually incorporate Eventick's platform into Sympla’s. This will be duly communicated to all clients so as to guarantee a smooth transition and a constant operation. We kept all Eventick’s staff and they are now part of #FamiliaSympla.
Were your investors / board supportive (what advice did they have, cautions, what was the best guidance or advice you received during the process etc)
As we started the conversations with Eventick, we told them about our plans and they were very supportive. It was a great opportunity for us to accelerate our growth, so it is well aligned to our plans together.
What advice would you give to other companies considering going down this path?
Whenever thinking of an acquisition, you must always keep in mind the assets the other company can effectively bring to yours and the value they can generate. There is a big cost on the integration so it’s important that 1+1 makes more than 2. Only consider an acquisition if it creates more value than just the sum of the assets.
What was the most important thing you learned during this experience?
I think an important learning is that there is a right time in the company's maturity for M&As. If you try it too early you might loose traction on your own growth or leave a lot of value from the acquisition on the table.
Check out some exclusive charts on Sympla's growth trajectory below the sales forecast for 2017 and published events in 2016!