Algar Telecom completes acquisition of Vogel Telecom

The shareholders of Brazilian regional operator Algar Telecom approved the purchase of smaller rival Vogel Telecom for $71 million from the Patria fund.

The deal first announced in May has already been approved by the National Telecommunications Agency (Anatel) and the Council for Economic Defence (Cade).

A post on the official company blog explains: ‘The acquisition of Vogel Telecom represents a step in strengthening Algar’s geographic expansion. This is done through the offer of integrated Telecom and IT solutions, with a focus on the B2B segment. This represents more than 60 percent of Algar Telecom’s business nationwide. With this [acquisition], the company now has a total of more than 110,000km of fibre, which extends from the northeast to the extreme south of the country.’

As previously reported by TeleGeography’s CommsUpdate, in May this year Algar Telecom agreed to acquire Vogel Telecom in a deal worth BRL600 million (USD114.5 million). The takeover has been carried out via Algar’s wholly owned Algar Solucoes unit.

Vogel Telecom is present in 150 cities across 13 states providing high-capacity fiber connectivity services to businesses and wholesale. The Distrito Federal and presides over a fibre-optic network that spans 27,000km.

The unit has a network of 27 thousand km of fiber, which will be added to Algar Telecom’s, totaling more than 110 thousand km of mesh.

“Vogel client is now Algar client,” announced the telco, a subsidiary company of the Algar Group, a business group that has completed 90 years.

“This acquisition represents an important step in strengthening the geographical expansion of the company and is fully aligned with its growth strategy through the offer of integrated Telecom and IT solutions, focusing on the B2B segment, which represents more than 60% of Algar Telecom’s business all over the country,” it said.