Brazil’s Positivo Tecnologia agreed to pay up to BRL235 million ($47 million) to acquire the IT division of local telecommunications group Algar.
Positivo will pay BRL190 million at the closing of the deal and an additional BRL45 million if certain targets are met one year after the deal, the company said late Monday.
“A large part of this amount will come from the company’s own funds, and possibly a bank loan,” Leandro dos Santos, Positivo’s vice president of strategy and innovation, told LatinFinance. He said details are still being hammered out.
The deal is Positivo’s largest acquisition to date. The 35-year-old firm was focused on PC and laptop assembly and maintenance until 2018, when it began diversifying its activities in IT.
The acquisition will also help internationalize its operations, as Algar TI has offices in Mexico, Colombia and Argentina. It will also boost the share of IT services as a share of Positivo’s revenue to 18-20% from the current 6-8%, said dos Santos.
Positivo’s shares rose 5.4% to BRL8.64 each on Brazil’s B3 exchange on Tuesday after gaining 2.4% on Monday.