The history of Izertis, a technology consultancy that manages the digital transformation of companies, is that of a self-made company. In its 26 years of life, it has maintained a sustained growth of an annual average of 23%, and, according to Pablo Martín, founder and president of the Asturian firm, “we have never entered into losses nor have we decreased”. A condition that, according to the manager, has its secret in offering a service focused on the latest technologies, such as cloud computing, artificial intelligence (AI) or blockchain. “Although all the consultants offer them, they don’t focus on them like we do,” says Martín.
During its half century of life, the company went from a rented office with second-hand furniture, one employee and a turnover of 100,000 euros, achieved with the implementation of equipment, installation and repair of computer services, to currently have 1,200 employees, bill 65 million in 2021, 28.2% more than in 2020, and achieve an operating result (ebitda) of 7.27 million, 38% above the previous year. The treasury has also multiplied by nine since 2019. “At the end of 2021 there were some 37 million euros to spend and a strong position of undrawn loans or credit facilities equivalent to the treasury, which generates a high availability of cash for face growth”, explains the president.
This growth opened the doors of BME Growth (the Spanish Stock Exchange for SMEs) two years ago, where it started with a capitalization of 36 million euros. A figure that currently exceeds 189 million euros, with a share valued at 7.86 euros. Despite this revaluation, analysts such as those of GVC Gaesco believe that Izertis shares still have potential since in their latest report they valued them at 9.70 euros. “We try to comply with the business plan that we have in place and we hope that the market reflects it. Going public has helped us to professionalize the company and finance it”, underlines Martín.
Also in these two years, the movements in the shareholding have been notable. While 58.89% remains in the hands of the founder, through the company Laren Capital, and the employees maintain 10.88%, it has 1,500 minority shareholders, in addition to family office and investment funds such as Metavalor (0.92%), Santander Small Caps (2%), Belka (1%) or Inveready, which invested four million euros in the subscription of convertible bonds issued by Izertis, which, according to Martín , will help them acquire new companies. Changes that seem not going to stop here. “We continue in conversations with national and international investors, especially in Europe.”
Despite its brief history as listed on BME Growth, the company sets other goals. “We are delighted, but we also believe that companies should aspire to be in the continuous market. We made a statement in which we said that we would be here for about five years and we have been here for half. We have the other half left to make the leap”, assures Martín.
Growth
The technology company is also in the middle of its strategic plan with which it plans to bill 125 million in 2023, double that of 2021, and obtain an ebitda of 12.5 million. Without specific figures on cash forecasts for 2022, the founder of Izertis maintains that doubling the figure is a viable bet if the rise in the last five years is considered. “Revenues and ebitda have grown by more than 35%. We just have to keep up that pace.”
The Izertis roadmap speaks of organic and, to a large extent, inorganic expansion. With the first, it maintains lines of business based on blockchain or AI with which it grows at double digits, with clients of various kinds ranging from banking, industry or the food sector. Very varied projects with disparate destinations such as the digital literacy of rural schools or the first digital health certificate in Africa, launched in Cape Verde together with the World Development Bank, or the implementation in the Barbados islands of the title registry university so that they cannot be hacked or copied, both through technology blockchain. At the same time, it collaborates with European organizations on cybersecurity issues or on projects such as Border Sens, for the control of illegal substances at customs through high-precision electrosensors. But there are also projects closer to home, such as the one in Spain with Endesa and IBM, with which they solved the management of clients with energy dependence (people who cannot take care of their bill). A service that they implemented in Malaga as a pilot experience and that they solved with technology blockchain.
As for inorganic growth, it has been and will be the company’s reference axis. Acquisitions that, according to Martín, have developed a strategic function and have covered a need. Since its inception, they have acquired more than 30 companies based in Mexico, Portugal or Spain. “We are not only going to maintain this rhythm of purchases, but we are going to increase it. We have made many very small operations, but from now on we are going to make fewer purchases, but larger ones, concentrated, above all, in the Peninsula”. For Martín, southern Europe is a highly fragmented market in which small companies cannot face challenges such as internationalization or attracting talent. “For them this is a pipe dream. That is why we believe that there are possibilities here to buy high-value technology companies”.
So far this year, it has acquired Duonet, a technology company also from Asturias, with a turnover of just over two million euros and an ebitda of 182,000 euros, and the Valencian consulting firm Okode, a specialist in IT services. And among its great corporate milestones, the latest acquisition stands out, the Madrid-based Sidertia, focused on cybersecurity services. An operation that, from the company, they consider as the largest carried out so far, despite not communicating the price of the transaction. With 10 years in the market and more than 100 employees, who have become part of the Izertis staff, it earned 6.3 million euros in 2021, which represents 10% of the Asturian company’s turnover, and has clients such as the National Police or the State Public Employment Service (SEPE). A purchase that, according to company sources, places Izertis among the benchmarks in the cybersecurity sector in which, until now, they were present, but not in relevant positions.
Izertis operates in 50 countries with nine offices spread across Spain, Portugal, Latin America (Mexico, its main market, the Dominican Republic, Colombia and Peru) and Africa (Cape Verde and Cairo). Spain with an 80% share, Latin America with 7% and Portugal with 6% are its reference markets. “We cannot grow in all places at the same time, despite having a certain size. Our main market is nearby”, concludes its president and founder.
