Mergers and Acquistions News
Categories: Telecoms, Software
July 8th 2011, 16:49PM
Telecom Italia is set to acquire Brazilian fibre-optic infrastructure operator AES Atimus as it continues its policy of expansion in emerging markets.
Italy's biggest telecoms operator, which operates a Brazilian mobile unit called TIM Participaoes SA, will pay around 700 million euros (£625 million) for AES Atimus.
"Brazil has been our growth engine," executive chairman Franco Bernabe told reporters at a press conference.
"This deal aims to strengthen our position in Brazil, which is strategic for us and where we intend to grow."
The deal, which is Telecom Italia's biggest acquisition in around ten years, values the Brazilian firm at approximately 11 times its expected 2011 earnings before interest, tax, depreciation and amortization.
However, the acquisition is expected to provide savings of one billion Brazilian reais (£400 million) over three years.
AES Atimus runs a 5,500 kilometres fibre-optic network which runs across the sprawling cities of Rio de Janeiro and Sao Paulo. 
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