Telefónica El Salvador cleared to acquire local firm IBW

Telefónica El Salvador received the green light from local authorities to acquire telecoms and network security services provider IBW.

According to the country's antitrust regulator SC, the technical, economic and legal analysis of the deal showed that it will not affect competition.

The acquisition request was filed by the parties on December 22 and the SC probe was launched in January. The values involved in the deal were not stated.

In its authorization, SC said that the concentration will not lead to significant limitation of competition in the segments analyzed.

These segments include business connectivity services focused on large clients, distribution of firewall solutions, distribution of endpoint security solutions and distribution of video surveillance equipment.

The acquisition request was filed on behalf of Fiber Systems Latin America, an entity that, according to SC, is controlled by Telefónica Móviles El Salvador and Telefónica Multiservicio.

Both units are owned by UK-based investment fund General International Telecom, which acquired Telefonica's El Salvador business for US$139mn in 2021.

General International Telecom El Salvador is, therefore, ultimately the buyer of IBW. 

The company is registered by UK authorities as being headquartered in London and having been incorporated on June 16 2021, five months before the deal with Telefónica was announced. It is listed as being led by US citizen Willian Liston Pitman.

Headquartered in capital San Salvador, IBW El Salvador was founded in 2001 and claims to offer companies dedicated links, structured cabling and security services, among others.