NSTech has already invested BRL 1.4 billion and is now getting ready M&As overseas
- November 16, 2022
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Tarpon and Greenbridge have already invested BRL 800 million in the business, which already generates BRL 100 million in cash per year
Businessman Vasco Oliveira, one of the main partners of the investment firm SK Tarpon, kicked off NSTech just two years ago, but has already set up an ecosystem of technological solutions for road freight logistics that earns BRL 650 million, generates BRL 100 million in cash per year and is now being structured for the first M&As abroad.
NSTech’s trajectory began with the acquisition of control of Buonny — a company that monitors high-value cargo, reducing theft rates — and has now surpassed 20 M&As, bringing together under one umbrella everything from road logistics management software, registration of cargo and even a specialized fintech that already makes a TPV of R$ 2 billion per year.
To put the business on its feet, NSTech spent BRL 1.4 billion between acquisitions and organic investments. The resources were financed with equity, debt and some cash generation. In the equity part, the two main partners (Niche Partners, the vehicle through which Tarpon makes the investments, and the Swedish Greenbridge) put up BRL 800 million.
Whenever he can, Vasco likes to emphasize that Tarpon and Greenbridge’s thesis for NSTech is for the very long term. “Together, Tarpon and Greenbridge own 75% of the business and we think we could be invested in the company for decades to come,” he said. But that doesn’t mean the company will always remain closed.
NSTech wants to be prepared by next year to go public, envisioning a potential IPO abroad (when market conditions improve). A share offering on the stock exchange could provide an outlet for some investors, but it would be above all a funding mechanism for the company to accelerate growth abroad.
“We have a plan to go public in the medium term, but much more as a way to finance and allow us to succeed in international expansion”, says Vasco.
The idea is to carry out the first M&As abroad in 2023, which could be financed both by a new round of the main partners and by an eventual (and less likely) operation in the capital market. “The company continues to generate a lot of cash and we are in good financial health. We’re still discussing it.”
With the technologies it developed (or bought) in Brazil, NSTech has already reached ten countries, mainly in Latin America, and has just debuted in Europe, but the idea is to have more relevance abroad, including the United States. In the future, the Brazilian operation will be just a small part of the business, representing what the country is in global logistics.
For Vasco, NSTech’s great differential is having gathered in one place the different solutions for the market. “We already have more than 100 solutions for all people in the logistics chain and road mobility”, he says, citing products designed to serve truck drivers, transporters and shippers.
This differential can be explored abroad, where there is nothing similar. “When you go to the US, each player makes only one of our verticals, but what we have today is able to serve more than ten different customers”, says the CEO of NSTech.
In addition, the company has been investing in the integration of all solutions. Soon, it should launch an open platform (which allows the integration of third parties) that will allow access to all the company’s solutions in a few clicks. The platform was developed by NSTech’s 700-person R&D team. In all, the company employs nearly 4,000 people.
In the financial area, NSTech’s fintech wants to gain scale from 2023, in addition to launching digital accounts for companies and individuals. In credit, working capital operations for carriers and prepayment of receivables are in focus. The company also filed with the Central Bank to act as a payment company, which will allow it to launch solutions for toll management.
Source: Pipeline Valor