Neogrid announces first acquisition after IPO

Neogrid, a supply chain management software company, announces today the purchase of the startup Smarket. The acquisition is the first after completing its initial public offering (IPO) on the Brazilian stock exchange (B3), in December 2020.

“Our M&A area is committed to identifying acquisitions that can accelerate Neogrid’s growth, whether adding new commercial, competitive or technological capabilities. We are focused on national and international companies, especially in Latin America, which, in addition to integrating products and increasing capacities, are compatible with our culture”, says Eduardo Ragasol, CEO of Neogrid.

Founded in 2014 in Florianópolis, Smarket offers a promotion management platform for supermarkets, pharmacies, and consumer electronics retailers, making all processes (from planning to execution) simpler and smarter. In 2020, the startup grew 33%, closing the year with 68 customers and revenue of R$ 303,437.19.

David Abuhab, Chief Strategy Officer at Neogrid, says that the deal will complement the company’s portfolio. “With the acquisition, we can add even more value to the retailers that already use Neogrid, expanding the capacity of the planning and replenishment solutions as well as those for store performance. Smarket’s solution operates in an extremely relevant process in the Brazilian retail market, promotions, which impacts the supply chain. More than 40% of the products available at food retailers, for example, are items on sale. As the two companies join forces, this will enhance retail strategies”, he says.

According to Thiago Grechi, Chief Financial Officer at Neogrid, the company had already identified a synergy with the startup. “We have been following Smarket’s history for a long time and we were already partners, as the solution they offer fits perfectly as a complement to our business. These items were crucial for choosing it as the first acquisition after the IPO”, he explains.

Operations of the startup, which has 26 employees, will be maintained independently, seeking economic and commercial synergies, and integration of solutions with Neogrid. Marcela Graziano, founder and CEO of Smarket, points out that the connection is also in the value that the company sees in the innovation environment to ensure quality deliveries to customers. “In addition to managing promotions, with the trade system, we map the stores, identifying and ensuring that the products at prime shelf space are the best for everyone’s business”.