GUADALAJARA, Mexico,
March 22, 2021 /PRNewswire/
-- Betterware de México S.A.B. de C.V. ("Betterware") (NASDAQ:
BWMX), the leading direct-to-consumer company in Mexico that focuses on the home organization
and solutions segment with a two-tier distribution model, today
announced that it acquired 60% of GurúComm, a Mobile Virtual
Network Operator ("MVNO") and Communications Software developer,
with an Enterprise Value of $75M
pesos (approximately $3.5 million
USD). The purchase price is $45
million pesos and the investment was paid out of existing
cash on the Company's balance sheet. The Company does not
expect the acquisition to be material to fiscal year 2021 results
and is maintaining its guidance provided when it reported fourth
quarter and fiscal year 2020 results on 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 positions the Company to
disrupt the home technology solutions market in Mexico by combining Betterware's highly
efficient distribution network of 1.3 million distributors and
associates and its vast and loyal customer base with the innovation
and technology product and software expertise of
GurúComm.
Luis Campos, Betterware Chairman
stated: "We are delighted to announce that we have acquired 60% of
GurúComm which will operate as Betterware Connect with our
Company. With this acquisition, we believe we are positioned
to disrupt the MVNO market in Mexico as we leverage our capabilities and
service offering to include the large and growing home technology
solutions product category. We look forward to partnering
with Victor Treviño, CEO, and Roger
Alarcon, Commercial and Innovation Director, who have had
tremendous success in creating innovative technology and
telecommunications solutions, to bring our 1.3 million distributors
and associates high quality, value priced home technology
offerings. This acquisition marks a very important milestone
for Betterware as it evolves our home product offering to include
technology-based solutions, which we expect to add to our long term
growth and profit potential."
Betterware Connect intends to launch technology-based home
solutions through three different product segments:
- MVNO including mobile voice and data, personal hotspot, and
fixed wireless broadband offerings
- Smart Home including a range of Smart Home and Smart Device
solutions
- Home Apps including Home Software-based solutions for a variety
of household needs and tasks
According to market studies, Betterware Connect possesses the
eight qualities integral to being successful in the MVNO
market. These qualities include: (i) a loyal customer base;
(ii) strong brand, (iii) high customer value proposition; (iv)
simplified distribution system; (v) easy to understand offering;
(vi) excellent MVNO relationships and network; (vii) a seamless
experience and efficient execution; and (viii) outstanding content
and applications.
GuruComm's management team is highly experienced in the
communication technology industry and this combined with Betterware
management's expertise and its commercial platform, provide for
substantial growth potential in the future.
The business will be launched in four stages, described
below:
- Distributors and associates will have the opportunity to
purchase Betterware Connect products (internet and mobile
plans).
- Distributors and associates will sell Betterware Connect
products to consumers.
- Betterware Connect plans to launch new products that are
connected to its network.
- Betterware Connect expects to introduce smart home
products.
The MVNO Opportunity:
Currently, MVNOs in Mexico have an
approximate 2% market share, which leaves ample room for Betterware
Connect through its acquisition of 60% of GurúComm to disrupt this
fast-growing industry, provide another source of income for its 1.3
million distributors and associates and add to its long-term
revenue and EBITDA growth rates.
The Company notes that industry trends for MVNOs are highly
favorable in Mexico, driven by
government changes in the mobile network that began in March
2018. Specifically, the Mexican government assisted to form
Altán, a mobile network operator entirely focused on offering
wholesale access to MVNOs. Given Altán cannot participate in
the retail market, MVNOs such as GurúComm, and now Betterware
Connect are positioned to disrupt the market previously dominated
by Telcel.
GuruComm's is headed by Victor Trevino, a 30-year
veteran in the telecommunications and IT industry. Prior to
joining GurúComm, Mr. Trevino was the founder of Ekonom, the first
company authorized to provide value-added telecommunications
services in Mexico. He was
also the founder of Ekomercio Electrónico, one of the top
electronic invoice providers in Latin America, which was
acquired by Grupo Sanford in 2016.
After founding Ekomercio, Mr. Trevino Founded Cierto Telecom,
one the of the top mobile prepayment networks in
North American and MVNO integrator.
Roger Alarcón is the Founder of GurúComm, the first MVNO
established over Altán's network in Mexico. Mr. Alarcon has an extensive
background in technology and is an innovation entrepreneur
with more than 20-years of experience. Prior to GurúComm, he
was an investment manager at Telmex, where he launched Prodigy
Mobile, Latin America's first
public Wi-Fi network. Mr. Alarcon was also the founder of BNN,
one of the top digital agencies in Mexico, which was acquired by Grupo CIE in
2017.
About Betterware de Mexico S.A.B. de C.V.
Founded in
1995, Betterware de Mexico is a
leading direct-to-consumer selling company in Mexico, whose CAGR 2003-2020 was above 20%.
Focused on the home organization and solutions segment,
Betterware's wide product portfolio includes home organization,
kitchen preparation, food containers, smart furniture, technology
and mobility, as well as other minor categories.
Supported by its top-class business intelligence and data
analytics units, which provides daily monitoring of key metrics and
product intelligence, Betterware has been able to achieve
sustainable double-digit growth rates by successfully expanding its
market penetration driven by its more than 59,000 distributors and
1.2 million associates network.
Its state-of-the-art infrastructure allows it to safely and
timely deliver its products to every part of the country, backed by
the strategic location of its distribution center.
About GurúComm
GurúComm is an MVNO (Mobile Virtual
Network Operator) and Telecommunications Software Creator. The
Company´s services include mobile voice and data plans, personal
hotspots, and fixed wireless broadband. These services are
bound together by proprietary web and mobile apps. The Company is
actively developing IoT integrations for the home, based in its
connectivity services. GurúComm is the first MVNO established over
Altán's network in Mexico.
Forward-Looking Statements
This press release
includes certain statements that are
not historical facts but are
forward-looking statements for purposes of
the safe harbor provisions under
the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements generally
are accompanied by words such as "believe," "may,"
"will", "estimate", "continue",
"anticipate", "intend", "expect", "should",
"would", "plan", "predict", "potential", "seem", "seek,"
"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 the projections contained in
this document, as past results in no way offer any guarantee of
future performance. For this reason, the Company assumes no
responsibility for any indirect factors or
elements beyond its control that
might occur inside Mexico or abroad
and which might affect the outcome of these projections
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SOURCE Betterware de México, S.A.B. de C.V.