Ilegra chooses Toledo for entry into U.S. marketplaceWritten by Duane Ramsey | | email@example.com
A global IT business based in Brazil, ilegra, has chosen Toledo as the home for its entry into the U.S. marketplace.
“A major reason for ilegra choosing Northwest Ohio is the geographic location, more specifically, our proximity to many major U.S. and Canadian markets,” said James Petty, president of ilegra USA. “It is advantageous because we plan to target companies in the automotive, health, banking and retail distribution industries.”
ilegra’s U.S. operations will focus primarily on database administration (DBA), offered as a monthly guaranteed service for database and application servers, Petty said.
The company has opened offices at One SeaGate in Downtown Toledo with plenty of room for expected growth. Petty said they will begin hiring sales and technical people this year.
Petty is originally from Toledo and formerly worked in finance for Dana Corporation, including several years in South America. He was working with ilegra as a consultant to help the company find a suitable site for starting up operations in the U.S.
The firm’s leaders had decided on the Midwest and were considering locations in Ann Arbor, Columbus and Toledo while interviewing candidates to lead the new U.S. operation. Petty said they offered him the opportunity to head up the company, and so they decided upon Toledo for its home.
The Regional Growth Partnership (RGP) of Toledo played a large role in recruiting the company, facilitating discussions with the state and helping ilegra with the site selection process.
“First and foremost, these are good-paying jobs. We are excited about what this project means to the economic growth of Northwest Ohio,” said Doug Born, vice president of business development at RGP, in a news release. “Our region’s ability to attract companies from the IT industry helps diversify our regional economy and establishes this area as a leading site for international business and investment.”
ilegra received an incentive package from the Ohio Department of Development worth more than $260,000, as well as additional incentives from the City of Toledo.
The Ohio Tax Credit Authority approved a Job Creation Tax Credit of 45 percent for a term of seven years for ilegra as part of a JobsOhio project. To earn that credit, the company committed to creating 25 new jobs, $2.5 million in annual payroll and $746,000 in capital investments within four years.
The City of Toledo’s economic development team also provided an incentive plan that complements the state package, according to information provided by city officials.
During the initial startup stage, ilegra will create an estimated 15 positions with a projected annual payroll of $1.05 million based on the average salary of $70,000. It is projected to employ 25 people within 24 months of operations with an estimated payroll of $2.45 million and initial capital investment of at least $500,000 for equipment and associated startup costs.
Under the Toledo Expansion Initiative, the city will rebate 10-30 percent of the employee municipal income tax withholdings paid to the city by ilegra during the prior year in the form of annual cash disbursements.
Through the Toledo Municipal Jobs Creation Tax Credit, the city has offered an annual credit equaling 40 percent of the business payroll taxes paid to the city. Those withholdings will be used to offset any business corporate income tax due by the company.
ilegra has partnerships with Oracle and Microsoft, is certified by Google Enterprise to offer Google Apps for Business and is a member of the SAP Extended Business Program.
“We’re selling our expertise as a specialist that can reduce the total cost of DBA by 50 percent,” Petty said.
Focusing on the digital media/information industry where stable IT environments are critical to success, ilegra created Scagil, a product that provides troubleshooting and scalable solutions.
Scagil involves multidisciplinary teams from development and operations working together to eliminate bottlenecks by developing flexible solutions and focusing on scalability, customer feedback, rapid turnaround and business value, according to ilegra.
For more information, go to www.ilegra.com.