Brazilian IT market attracts foreign investors

Brazil, the world’s seventh largest IT market, is attracting the interest of multinationals and foreign private equity firms, which search for mergers and acquisitions opportunities with local companies in order to enter the Brazilian market.

This year, up until October, there have been 124 M&A transactions in Brazil’s IT sector. This accounts for 17.3% of the total number of deals announced in Brazil in the period. It represents an increase of 67.6% compared to the 74 transactions which were closed in the same period last year, and there is an upward trend for the coming years in the light of the increasing interest from foreign investors in the Brazilian market and further room for consolidation in the IT sector.

Of the 124 transactions announced, 41 were held by foreign companies. “After the elections, and with less uncertainty regarding the Brazilian economy, an increase in foreign investor interest in the IT sector in Brazil is expected over the next two years,” said Rogério Gollo, a partner at PricewaterhouseCoopers Brazil and leader in Mergers and Acquisitions.

As part of its growth strategy in Brazil, the Chilean group Sonda IT, a services company that totalted revenues of US$1.2 billion in 2013, acquired the Brazilian company CTIS Technology, which provides outsourcing services, focusing on business processes, application management, infrastructure support, service desk and print outsourcing.

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