The search for a higher purpose

 

Although few know it yet, a few days ago we have reached an agreement to incorporate the ASPgems services production unit as a business unit to the Sngular group through a purchase agreement that excludes the Neurok platform. The business unit will continue for one year under the direction of Agustín Cuenca, to maintain the focus on agile solutions and help with the strategy and integration of the business lines of both companies.

The speed of trust

Transparency, trust and authenticity have been the pillars that have made it possible to reach an agreement in record time. When José Luís Vallejo, CEO and founding partner of Sngular, approached us and shared with us his vision of the company as an ecosystem of technological innovation, the truth is that ASPgems was not for sale. However, both Agustín Cuenca and I, who share his business vision, and we were aware that integration would allow us to be part of a larger business ecosystem, benefit from the diversity of technologies, gain critical mass and accelerate our growth without losing our way of being.

So we saw José Luís’ proposal from the first moment with very good eyes, convinced that it was a great opportunity. In the words of José Luís, it was about going from relatives to relatives in the middle of the pandemic.

When you start from a shared vision and values, it is easier than it seems to reach an understanding on issues such as valuation, risks and acquisition conditions. We both wanted the same thing: to serve as a catalyst for each other’s growth. It made it easier for us to be companies with similar values and to have acquaintances on both sides, being able in weeks and without the presence of lawyers to reach a reasonable agreement for both parties, which ensured business synergies and protected the interests and professional future of partners and employees.

Undoubtedly, trust is key in this type of agreement. And this is because it has a very high component of reciprocity: the trust we place in the other party directly influences the trust that the other party places in us. José Luís, communicated to us from the beginning of the negotiations clearly his objectives and expectations, he was direct, frank and sincere. For our part, we corresponded with the same frankness by setting from the beginning the minimums required to make the operation viable. Hence, the agreement was closed in a few weeks.

About Sngular

Sngular is an international business group of 650 employees, with offices in Spain, the United States, Chile, Mexico and Singapore. During 2019 its revenues reached 43 million euros, which represents an increase of 43% over the previous year.

One of the differentiating elements of the company is having created around it an ecosystem of technological talent and an open innovation environment that enriches both its clients and the community of startups with which it collaborates and in which it invests on a regular basis.

In the last 5 years, Sngular has successfully acquired and integrated several startups specialized in exponential technologies, such as BrainSide (VR), CrossThings (IoT), Totemcat (Games), Wildbit Studios (games, VR / AR, advanced interfaces), Realized (UX), Sopinet (SW), OpenShine (SW). And more recently in 2019 it has acquired Manfred (Talent Agency) and a significant stake in UXERSchool (UX Training Center).

In search of a higher purpose

Purpose is the engine of business, it is the solution we want to bring to the world, the reason we exist. ASPgems has always been a company with purpose. Pioneers in Ruby on Rails. Since our inception 15 years ago, our purpose has been to become a leader in agile development and create a community of developers with a passion for truly human-centric software.

The principles that gave rise to the company: purpose, transparency, collaboration, excellence, courage, personal responsibility and collective results have hardly changed. These principles have helped us to become leaders in agile development in Spain, contributing all these years to innovation in many Startups, SMEs and significant companies inside and outside our country.

2020 has undoubtedly been a complicated and demanding year, one of those that really test any organization and that you want to forget as soon as possible. The pandemic has taught us that it is time for us to give up the limits we have placed in our organizations, time to put on new lenses and explore beyond the known reality to reinvent ourselves with a renewed purpose.

The integration in Sngular, without a doubt, gives us the opportunity to contribute to a higher purpose, such as being part of a global ecosystem of technological talent. The objective is none other than to create an ecosystem of business innovation where the efforts, perspectives and potentialities of both companies are added to go beyond the limits of each one and create a superior business model.

For the more curious, who will wonder about the value of the transaction, I will add that we have valued the “talent team” over business models and we have prioritized long-term sustainability over short-term results. The price has been calculated as a multiple of ASPgems’ EBITDA in 2020, reflecting not only the value of the business and talent team transferred, but also growth expectations in the coming years. The agreement includes a right to purchase Sngular shares, which ensures our commitment and linkage to the success of the integration.