Brazil’s Megatelecom eyes expansion with G8 Telecomunicações acquisition

Details: Vaughan O'Grady; Category: Optical & Fixed Networks; 05 July 2023; 6736 views

Megatelecom, which operates in Brazil’s corporate market as a provider of telecommunications services, has acquired the G8 Telecomunicações group, also a provider of telecom and multimedia connection services for the corporate market.

The transaction is described as an important milestone for both organizations, bringing about a significant transformation in the market.

The G8 Telecomunicações group has its own optical fibre network, which covers approximately 10,000 kilometres. The company also has long-distance network exchange agreements with a number of operators in Brazil, extending its coverage to approximately 25,000 kilometres. It boasts a solid presence throughout the Brazilian Midwest and in strategic states such as São Paulo, Rio de Janeiro and Minas Gerais. It recently expanded its operations to the state of Amazona.

It owns a number of edge data centres in cities that are strategically relevant for Megatelecom, such as São Paulo, Goiânia and Brasília, among others.

The entire revenue of the G8 Telecomunicações group – approximately R$60 million (US$12.4 million) per year – comes from the B2B segment.

Megatelecom says it sees this acquisition as an important step towards geographic expansion in the agribusiness region, increasing the addressable market and opening up new business opportunities for the company.

The integration of networks, cross-selling and the broad exchange of knowledge and solutions between the companies will allow Megatelecom to take its portfolio of IT services to the markets and customers served by the G8 Telecomunicações group. With this acquisition, Megatelecom will start to operate at a multi-regional level, in the Midwest, North and Southeast regions.

Megatelecom adds that the focus in the first months of the acquisition will be on accelerating investments in network improvements and expansions.