IBM eyes Brazil market with investment in SIX Automacao

Summary:Motivations for IBM's latest investment include further its Smarter Planet agenda while delving deeper into the Brazilian market.

IBM has formed a new strategic partnership with Brazilian business group EBX Group that will play upon both its geographical and smart technology ambitions.

Primarily, IBM will acquire 26 percent of SIX Automacao, a subsidiary of EBX Group company with a focus on the oil and gas operations sector. Under the terms of the agreement, IBM will contribute smarter industry solutions, products, software and services to complement SIX Automacao's existing resources and solutions.

IBM Brazil general manager Ricardo Pelegrini explained in a statement the motivations behind the agreement and how this investment will open more doors for IBM in South America:

This partnership with EBX Group demonstrates IBM's strength in generating higher value business. EBX's business depth and industry insight opens up significant opportunities to collaborate on growth and new market development in Brazil and beyond. IBM brings innovation and cutting-edge technology that will contribute to the country's development through our Smarter Planet agenda.

Furthermore, IBM and EBX will work together to launch a Joint Industry Solutions Center at SIX Automacao for research and intellectual programs focused on natural resources, sustainability and solutions aligned to both IBM's Smarter Planet strategy and EBX Group's business needs and market requirements.

The Solutions Center is intended to offer customers in four Latin American countries (Brazil, Chile, Colombia, Peru) the ability to conduct tests, proofs of concept and customize technology for their specific needs.

Additional terms of the deal include EBX Group outsourcing IT operations to IBM for approximately $1 billion over 10 years.

Related:

Topics: IBM

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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