HIG Capital analysing ten possible fibre takeovers in Sao Paulo

8 Mar 2021

HIG Latin America, the regional offshoot of Miami-based HIG Capital, is said to be evaluating the acquisition of up to ten fibre-optic ISPs in Sao Paulo, Valor Economico reports. The operators in question must serve at least 10,000 customers and generate annual revenues of BRL10 million (USD1.75 million). Discussing the firm’s enthusiasm for Sao Paulo-based players, Marcelo Hudik, the managing director of HIG Brazil and Latin America, commented: ‘We want to avoid small operations spread throughout Brazil. We want a greater network density.’

TeleGeography notes that HIG Capital signposted its intention to enter the Brazilian broadband market in November 2020, when it completed the acquisition of Sao Paulo-based DSN Participacoes (Desktop Sigmanet). At that date the ISP served 185,000 subscribers across 20 cities in Sao Paulo State. Announcing the deal, HIG said that Desktop Sigmanet was ‘positioned to serve as the platform for a roll-up strategy in the sector, benefiting from a largely underpenetrated and fragmented market’.

Brazil, Desktop Sigmanet, HIG Capital