The capital injection will be used to fund Brazil TecPar's strategic business plan of expanding and consolidating its fiber optic platform and strengthening the delivery of fixed broadband and telecommunications solutions to residential, corporate and government customers.
The agreement provides for an initial investment of R$300 million (about A$80 million), for a 16% stake, with the possibility of Macquarie making additional direct investments of up to A$400 million for a higher stake in the Brazilian operator.
Brazil TecPar, a relatively small operator with big ambitions, provides fixed broadband, voice and TV services, technology support, infrastructure sharing and corporate projects for more than 820,000 customers in eight Brazilian states.
The Brazilian operator manages approximately 150,000 kilometers of fiber optic networks, capable of reaching more than 3 million connections, and aims to be among the five largest connectivity and technology companies in Brazil by 2027.
“With thousands of ISPs, for some time Brazil has experienced consolidation movements and consequently a maturation in the Connectivity and Technology sector," said Gustavo Stock, founder and CEO of Brazil TecPar.
"The Macquarie Capital investment will bring financial support to our business plan and significantly strengthen our corporate governance."
Macquarie Group has been investing in infrastructure projects in Brazil for more than 25 years, through its asset management and commodity trading units.
“As Brazil moves forward in strengthening and consolidating its fiber optic network, we see great opportunities for TecPar given its extensive track record of successful acquisitions and strategic network expansions”, said Kevin Nobels, Executive Director of the Infrastructure and Energy team at Macquarie Capital.
“This investment will further strengthen Brazil TecPar's presence and contribute to expanding connectivity throughout Brazil.”
As of September 2024, Macquarie reported A$917 billion assets under management
The transaction is subject to regulatory review and antitrust approval.
