Business

MercadoLibre is buying the Latin American startup Lagash

The agreement plans to honor previous commitments, since Lagash teams were already working on MercadoLibre projects

Latin America's largest e-commerce platform, Mercado Libre, reported its first quarter results, which made its shares spike at Nasdaq. Photo: Shutterstock
  • Lagash currently operates in five Latin American countries;
  • Over Lagash’s 350 professionals will join MercadoLibres’s team.

The e-commerce giant MercadoLibre is buying the software development startup from Buenos Aires Lagash. The acquisition statement was made this week, by MercadoLibre.

Founded in 2001, Lagash’s aim was to provide affordable software solutions to big companies. The company started working closely with Microsoft to speed up software development in the early 2000s by implementing the company’s tech into the market.

As time went on, Lagash’s operations grew along with collaboration with Microsoft. That’s how the company ended up opening offices in the United States. When it gained a life of its own, Lagash was already helping companies like Citibank, Santander and others to develop softwares.

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With the acquisition, Lagash’s over 350 professionals will join MercadoLibre’s team of 3,400 developers. Lagash currently operates in five countries in Latin America: Argentina, Chile, Colombia, Mexico and Uruguay.

MercadoLibre says that this acquisition will allow the company to open new development centers in Mexico, Chile and Colombia, and enhance its IT Center in Argentina.

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Daniel Gándara, IT Vice President of MercadoLibre, said in a statement that “the opening of the new development centers will be key to continue growing and maintaining leadership throughout Latin America”.

Federico García, Lagash CEO, affirmed that “it’s a pride to be able to join MercadoLibre family”. He also said that it shows that Lagash has done a good job. Lagash’s teams were already working on Mercado Libre projects and also with other clients.