GUADALAJARA, MEXICO, March 22, 2021 / PRNewswire / – Betterware de México SAB de CV (“Betterware”) (NASDAQ: BWMX), the leading direct-to-consumer company in Mexico which focuses on the home organization and solutions segment with a two-tier sales model, announced today that it has acquired 60% of GurúComm, a mobile virtual network operator (“MVNO”) and communications software developer with an enterprise value of $ 75 million Pesos (approx $ 3.5 million). The price are $ 45 million Pesos and the investment was paid for out of available cash on the company’s balance sheet. The company anticipates the acquisition will not be material to FY2021 results and is maintaining its guidance as it does fourth quarter and FY2020 results on. published February 18, 2021.
GurúComm will operate within Betterware as Betterware Connect, led by the existing GurúComm management team. The addition of GurúComm to the Betterware portfolio enables the company to revolutionize the market for home technology solutions Mexico by combining the highly efficient distribution network of Betterware with 1.3 million sales partners and partners and its large and loyal customer base with the innovation and technology, product and software expertise of GurúComm.
Luis CamposSaid Betterware Chairman: “We are pleased to announce that we have acquired 60% of GurúComm, which will operate as Betterware Connect with our company. We believe that with this acquisition we will be able to support the MVNO- Market in Mexico as we leverage our capabilities and service offering to include the large and growing product category of home technology solutions. We look forward to working with Victor Treviño, CEO, and Roger Alarcon, Commercial and Innovation Directors who have had tremendous success developing innovative technology and telecommunications solutions to bring high quality, affordable home technology offerings to our 1.3 million distributors and partners. This acquisition represents a very important milestone for Betterware as it adds technology-based solutions to our home product offering that we expect will add to our long-term growth and profit potential. ”
Betterware Connect intends to bring technology-based home solutions to the market in three different product segments:
- MVNO including mobile voice and data services, personal hotspots and fixed wireless broadband offerings
- Smart home with a range of smart home and smart device solutions
- Home apps, including home software-based solutions for a wide variety of household needs and tasks
According to market research, Betterware Connect has the eight characteristics that are essential for success in the MVNO market. These characteristics include: (i) a loyal customer base; (ii) strong brand, (iii) high customer value proposition; (iv) simplified distribution system; (v) easy to understand offer; (vi) excellent MVNO relationships and networks; (vii) a seamless experience and efficient execution; and (viii) outstanding content and applications.
GuruComm’s management team has extensive experience in the communications technology industry and this, combined with the expertise of Betterware Management and its commercial platform, offers significant growth potential for the future.
The business is started in four stages, which are described below:
- Distributors and partners have the opportunity to purchase Betterware Connect products (internet and mobile tariffs).
- Distributors and partners will sell Betterware Connect products to consumers.
- Betterware Connect plans to introduce new products connected to its network.
- Betterware Connect expects the introduction of smart home products.
The MVNO opportunity:
MVNOs are currently in Mexico have a market share of around 2%, which, with the acquisition of 60% of GurúComm, gives Betterware Connect plenty of scope to revolutionize this fast-growing industry, provide another source of income for its 1.3 million distributors and employees, and increase its long-term revenue and EBITDA growth rates.
The company notes that the industry trends for MVNOs are very favorable in Mexico, driven by government changes in the cellular network that began in March 2018. Specifically, the Mexican government supported the establishment of Altán, a cellular network operator that focuses exclusively on offering MVNOs wholesale access. With Altán unable to enter the retail market, MVNOs like GurúComm and now Betterware Connect are able to disrupt the market previously dominated by Telcel.
GuruComm’s is led by Victor Trevino, a 30 year veteran in the telecommunications and IT industries. Prior to joining GurúComm, Mr. Trevino was the founder of Ekonom, the first company authorized to provide value-added telecommunications services Mexico. He was also the founder of Ekomercio Electrónico, one of the leading electronic invoicing providers in Latin America, which was acquired by Sanford Group in 2016. After founding Ekomercio, Mr. Trevino founded Cierto Telecom, one of the leading prepaid mobile networks in North America and MVNO integrator.
Roger Alarcón is the founder of GurúComm, the first MVNO established through Altán’s network in Mexico. Mr. Alarcon has a broad technological background and is an innovation entrepreneur with over 20 years of experience. Prior to GurúComm, he was an investment manager at Telmex, where he launched Prodigy Mobile. Latin America first public WiFi network. Mr. Alarcon was also the founder of BNN, one of the top digital agencies in Mexico, which was taken over by Grupo CIE in 2017.
About Betterware de Mexico SAB de CV
Founded in 1995, Betterware de Mexico is a leading direct selling company in Mexicowhose CAGR 2003-2020 was over 20%. Betterware’s broad product portfolio focuses on the home organization and solutions segment and includes home organization, kitchen prep, food containers, smart furniture, technology and mobility, and other smaller categories.
Supported by its high-profile business intelligence and data analytics units, which provide daily monitoring of key metrics and product information, Betterware has achieved sustainable double-digit growth rates by increasing its market penetration through its network of more than 59,000 distributors and 1.2 million employees.
Its state-of-the-art infrastructure enables it to deliver its products safely and on time to any part of the country, supported by the strategic location of its distribution center.
GurúComm is an MVNO (Mobile Virtual Network Operator) and developer of telecommunications software. The company’s services include mobile voice and data plans, personal hotspots, and fixed wireless broadband. These services are linked through proprietary web and mobile apps. The company is actively developing IoT integrations for the home based on its connectivity services. GurúComm is the first MVNO established through Altán’s network in Mexico.
This press release contains certain statements that are not historical facts but forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. “” can “,” will “,” estimate “,” continue “,” foresee “,” intend “,” expect “,” should “,” would “,” plan “,” predict “,” potentially “,” Appearance, “looking”, “future”, “outlook” and similar expressions that predict or indicate future events or trends, or that are not statements of historical matters. The reader should understand that the results obtained may differ from those contained in this document Projections may vary as past results are in no way a guarantee of future performance and the company therefore accepts no responsibility for any indirect factors or elements beyond its control that may occur in Mexico or abroad that could affect the outcome of these projections
SOURCE Betterware de México, SAB de CV