Chief executive officer (CEO) of Productive Business Solutions (PBS), Pedro Paris shared that the recent acquisition of PBS Technology Group (PBSTG) not only increased the footprint of the company in Latin America and the Caribbean, but also deepened its talent pool, which is a major driver of its growth.

PBS, on September 2, announced in a notice on the Jamaica Stock Exchange website its acquisition of then sister company, PBSTG, through a cash and stock offer. As per the agreement, PBS paid US$5,494,403 in cash and issued 62,940,796 common shares to Musson (Jamaica) Limited, Portland Caribbean Fund II LP, Portland Caribbean Fund II (Barbados) LP, and Portland Fund II Co-Invest Partnership.

In an e-mailed response to the Jamaica Observer, Paris confirmed that the total sum of the transaction amounted to US$53.9 million, based on the assumption that each stock valued US$0.77 cents at the time of the announcement.

“The transaction cements PBS as the leading enterprise IT company in the Caribbean and Central American region. The acquisition of PBS Technology Group gives PBS an unrivalled footprint in 19 countries, an increasingly diversified mix of high-quality businesses, and a talented team of over 2,100 IT professionals,” the PBS CEO said.

With PBS Technology Group as subsidiary, PBS will now have brick and mortar operations in Trinidad and Tobago, Antigua and Barbuda, and Guyana. Prior to this the company serviced those countries through its Barbados office.

Paris also disclosed that PBSTG will retain the employment of Ian John as a CEO, who will report to him.

“The ability to work with the talented executive team at PBS Technology Group was a major driver of Productive Business Solutions’ acquisition decision,” he continued.

In the notice PBS highlighted that the combined entity should generate revenue of US$250 million per annum. To this end, both PBS and PBSTG will share enterprise resource planning and logistics services to reduce costs.

“However, cost synergies are not a major driver of this transaction,” Paris noted, adding, “PBS continuously evaluates ways to make our operations more efficient.

“PBS is a technology business that depends on attracting, retaining, and managing exceptional people to meet our objectives. The biggest synergies will come from the collaboration of our 2,100 IT professionals and proliferating best practices across our 19 operations,” he told Caribbean Business Report.

For the half-year ended June 30, 2021 PBS’s book revenue amounted to US$103.06 million, reflecting an increase of 41 per cent, relative to the same period in 2020.

In their report to shareholders both Paris and Chairman Paul B Scott attributed the growth to executing projects in response to COVID-19, as well as working with leading banks across the region on digital transformation initiatives.

PBS, in its notice on the acquisition, highlighted that, “PBSTG provides digital transformation consulting services, managed services, technical support services”, among others. The company also acquired Surepay, an e-billing platform in Barbados and Trinidad and Tobago.

“Together PBS and PBS Technology will create an unrivalled platform that covers the Caribbean and Central America. Our increased scale and combined resources will allow us to better serve our clients and offer exceptional value to global technology brands seeking to do business in our region. This is particularly true in the current environment which has accelerated the pace of technological adoption and highlighted its vital importance to our economic recovery,” Scott stated.