The Brazilian Internet Service Provider (ISP) Desktop Sigmanet acquired LPNet, one of the largest broadband operators with FTTH in Sao Paulo, where it has around 127,000 accesses and covers more than 40 municipalities.
According to local media reports, Sigmanet announced that its objective is to acquire companies located in geographic areas adjacent to its current operation and that have a strong dominance in the market, which can continue to grow organically after the change.
In line with the expansion plan, the transaction reinforces the ISP's presence in the interior of São Paulo, operating in more than 100 municipalities with a population of more than 9 million inhabitants and a total of more than 3 million homes, reinforcing its leadership position in the largest market in Brazil.
LPNet is made up of five service provision divisions. After the purchase, Desktop Sigmanet now has LPNET Telecomunicaciones, Velus Communications Services, Netstyle Computer Equipment Trade, Silva e Silveria Internet Provider and LPNET Billing Services.
Desktop Sigmanet went public on B3 in July, capitalising on itself to carry out its expansion plan through acquisitions in the state of São Paulo. At the time, the company raised R$715 million. The company's current market value is R$1.91 billion. This is the third acquisition since then by the company. The amount paid by LPNet was not disclosed.