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ES25_IT_EvolutioJacinto Cavestany

SPAIN - Telecoms & IT

Jacinto Cavestany

CEO, Evolutio

Bio

Jacinto Cavestany holds the position of CEO of Evolutio, directing the global strategy of a team of more than 1,300 professionals. Previously, he held the positions of commercial director and director of customer service at BT Spain. Previously, he worked for Getronics as director of the managed services business and for Olivetti Solutions as director of marketing. Cavestany is a telecommunications engineer specialized in data transmission and digital signal from the Polytechnic University of Madrid, with an MBA from IESE and Dartmouth University.

"Throughout Europe, there are regulatory complications and complexities in labor, and finding talent is a major concern for the future."

Jacinto Cavestany, CEO of Evolutio, talks to TBY about growth since 2020, acquisitors, and Spain’s digital infrastructure.

What significant milestones have occurred since the company’s inception in 2020, particularly in terms of growth and strategic partnerships?

Evolutio started operations on June 1, 2020, in the middle of the pandemic. Since then, we have had two carve-outs. The first was separating from BT, which was a complex process. Then, we acquired four companies in Spain and Portugal, two in each country. This made us an interesting Portuguese company with almost EUR90 million in revenue in 2024. In Spain, we stand at around EUR340 million this year. We are now a EUR420-million company, having started at EUR261 million four years ago. In December 2023, we sold our telecoms infrastructure to Lyntia Networks, a major wholesaler in Spain, and reached a mutually advantageous agreement to be its B2B channel for its telco infrastructure. Evolutio is now more focused on the service business and use a specialist like Lyntia Networks in the telco business to deploy its solutions.

Evolutio recently acquired Securnet, which specializes in cybersecurity and connectivity. How has this acquisition elevated its position in the Portuguese market? 

In 2022, we were not present in Portugal. We initially acquired Warpcom, which was also involved in system integration, and doubled its size in two years, generating significant interest in the market. We then sought other opportunities in the Portuguese market to secure our goal of being among the top five or 10 suppliers in any given market. Securnet had a fantastic profile that complemented Warpcom, and after acquiring the former, we plan to merge the two companies in the future to create a powerhouse. We have evolved from having a nonexistent presence in Portugal to becoming the leader in system integration and cybersecurity. The progress has been rapid, and there is a great opportunity, especially as Spain is linked to European funds, along with all the investments occurring in Portugal. The Portuguese economy has performed exceptionally well in the last five or six years. Additionally, Evolutio opened in Mexico in October 2023. We have signed our first contracts and have a promising pipeline. While it may not reach the scale of Portugal, we aim to establish Mexico as our foothold in Latin America. It is a natural progression for a Spanish company like ours to operate there, considering that most of our customers are active in that region. We are currently recruiting personnel to expand our services and build up our presence. We are well acquainted with the continent, having spent five years there during our BT experience. Despite the challenges, we believe we can achieve significant accomplishments in Latin America.

How do you tailor your cloud and cybersecurity solutions for each client?

You need to balance tailoring and striving for greater productivity. The larger the company, the more important tailoring becomes. Over the last two or three years, even large customers have been attempting to automate and standardize their procurement and deployment processes. Resources are scarce. Throughout Europe, there are regulatory complications and complexities in labor, and finding talent is a major concern for the future. That is why we are opening centers in Latin America, having already opened one in Spain in Linares, a rural area of Andalucía. There is an unemployment rate of 40%, though it boasts a solid university and an adequate pool of trained professional services personnel. We anticipate having 120 employees there within two years. It is proving to be a valuable experience because there is minimal attrition and costs of living are also lower compared to larger cities.

How do you plan to capitalize on an investment in the projected growth of Spain’s digital infrastructure? 

In 2023, we made a strategic shift to focus on four distinct business units. This year, we have opted to narrow our focus on fewer partners and customers due to our limited capacity for comprehensive market penetration. To facilitate this, we have restructured into four end-to-end managed business units, allowing us to target specific markets more effectively. For example, the competitive landscape in cybersecurity differs significantly from that in AI for contact centers. With a solid understanding of these four markets, Evolutio is positioned to make informed decisions. Looking ahead, we anticipate system integration and security to be the foundational businesses for the next decade. The intricacies of integrating various components to enhance business processes pose significant challenges, particularly with the constant emergence of new companies and tools. As part of our strategic initiatives, we have positioned ourselves as one of the preferred Microsoft partners in Spain and Portugal, obtaining the maximum certifications.

What are your plans for future growth for the coming year?

Our main goal is to continue growing both organically and inorganically. We are seeking medium and small companies that address specific gaps in our operations. Further growth may involve expanding into another country in Latin America if we secure an anchor customer. We aim for sustainable growth; it is not solely about revenue but also about integrating all the components effectively. Currently, all our acquisitions have retained their original managers, and we have facilitated introductions to our management team to ensure alignment across both entities. It is not feasible to pursue numerous acquisitions annually as it could overwhelm management teams. However, we can handle a few each year, along with potential international expansions and initiatives to enhance the efficiency of our business units. This strategy is sufficient for the next two or three years.

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