Gisma considering joint venture to introduce environmental management software to Peru

Ana Toral in Santiago, Merger Market.-
Gisma, a private Santiago, Chile-based enterprise software company, is considering forming a joint venture to introduce its environmental management software in the Peruvian market, said owner and general manager Gonzalo Asencio.
The company, which has 8 years of experience in environmental management software space, hopes to close a deal in 2016, said Asencio. The company is specialized in providing its environmental management software to the mining and energy sector enterprises.
Peru is a market of interest because of its economy’s growth over the past decade and the importance of its mining and infrastructure industries, the owner explained.
Gisma is among the main players specialized in the environmental management software space in Chile, but its home market is small, so entering Peru would help it continue to grow, he said.
An ideal JV partner would be a local environmental consultancy company with expertise in providing services to the mining, energy and infrastructure sectors, Asencio said. Gisma would contribute its know-how and experience in the environmental management software field, he added.
Gisma is interested in receiving proposals from advisors that have identified potential JV partners, said Asencio, who is in charge of running the search. The JV would include an equity contribution from both companies, however the exact stake percentage has not been decided yet. The company has already held meetings with prospective partners, and it would finance the JV through its own resources, he said.
Once Gisma finds a suitable JV partner, it would consider hiring legal advisors in Peru, Asencio said.
The company works with an internal legal advisor in Chile and banks with Banco Santander, Banco de Chile, and BCI.
Asencio said that while he would entertain the possibility of selling a minority or majority stake in the company, the current focus is on forming a JV.
Gisma’s core business is to provide highly specialized and robust environmental management software called “SIGEA”, which helps companies meet its environmental requirements, reduce its operational risk, and fulfill quality standards, Asencio said.
The company’s main customers are Codelco, Anglo American, Antofagasta Minerals and Barrick, he said.
It main competitor in Chile is SAP, he said. Its main competitive advantage is its know-how in the environmental space, which allowed Gisma to develop this software, which is specifically designed for environmental management, he said.
Asencio, age 41, founded Gisma in 2007 in Santiago. He holds 70% of the company and three other partners hold the remaining 30%, he said.