Earlier this month, Brazilian regional ISPs Vero Internet and AmericaNet agreed to merge their respective operations.
Vero currently ranks as the seventh-largest ISP in Brazil; AmericaNet is eleventh. The enlarged entity will jump to fifth place in the fixed broadband market.
The deal seems highly likely to spark further consolidation. Regional fiber-to-the-home (FTTH) players have flourished in recent years, with a number of fast-growing ISPs snapping up operations in and around their regional strongholds.
As of May 2023 (most recent official data), 16 Brazilian ISPs served more than 250,000 subscriptions, suggesting the time is right for a sustained period of M&A activity.
Let’s take a look at the companies that have been driving M&A in Brazil in recent years.