Brazilian regional operator Algar Telecom has agreed to acquire B2B player Vogel Telecom in a deal worth BRL600 million (USD114.5 million). The takeover, which will be carried out via Algar’s wholly owned Algar Solucoes unit, will involve the acquisition of shares representing at least 85.2% of Vogel (potentially rising to a 100% stake).
Going forward, the transaction is subject to approval from the National Telecommunications Agency (Agencia Nacional de Telecomunicacoes, Anatel) and the Administrative Council for Economic Defence (Conselho Administrativo de Defesa Economica, CADE). In addition, the deal requires the non-exercise of pre-emptive rights by Vogel’s current minority shareholders.
Vogel Telecom is present in 150 cities across 13 states and the Distrito Federal and presides over a fibre-optic network that spans 27,000km.