Brazil’s Alloha Fibra greenlighted to acquire another ISP

Brazilian internet service provider Alloha Fibra, through its DB3 business unit, received antitrust clearance to acquire Maranhão-based ISP Atex Net Telecomunicações.

The approval without restrictions for the deal was published in the federal gazette. The value was not disclosed.

Alloha filed for antitrust approval with watchdog Cade on September 24. The company was represented by the Madrona Filho law firm.

Operating under its commercial brand Giga+ Fibra, Alloha is Brazil’s third largest ISP in number of fiber subscribers and in fiber extension, and the biggest independent player in the segment.

The group had 1.6mn accesses at end-August, according to telecom regulator Anatel, representing 3.2% of the fixed broadband market and only behind major telcos Claro, Vivo and Oi. 

Alloha provides network infrastructure and services in fixed broadband in all states except Acre, Roraima and Rondônia.

Atex, for its part, had 64,300 contracts as of end-August, making it the fourth largest broadband player in Maranhão state. 

The acquisition is seen by Alloha as part of a strategy to beef up its footprint and presence in the northeast state.

FUNDING AND SYSTEMS 

Alloha Fibra announced this month it looks to issue 250mn reais (US$43.8mn) in new incentivized debentures, or special infrastructure bonds, to finance a fiber network modernization project.

It estimates that the project will require 313mn reais in total.

In August, Alloha secured 148mn reais in financing from Brazil’s federal development bank BNDES.

As reported by BNamericas, Alloha is investing US$32mn in three calls as part of the modernization of its optical backbone, an initiative concentrated mostly in the central and northeast region of Brazil, including states such as Maranhão and Piauí.

The company, which is in the process of unifying brands acquired via M&As in recent years, also just completed the integration and consolidation of several IT systems.

Previously, the company said it operated with 89 different decentralized main systems but has reduced the number to 17 in a single, centralized digital architecture.

According to the company, this has brought productivity gains and cost reductions. 

Among the systems that have been replaced and unified are those for call centers, billing, invoicing and remote sales.

The Alloha group's business is divided into two units: B2C, focused on direct sales to end-consumers through the Giga+ Fibra brand; and B2B, which serves the corporate segment, operators and ISPs under Giga+ Empresas.