(Reuters) February 17, 2011 – Private equity firm Silver Lake plans to invest $1 billion in the purchase of Brazilian information technology companies over the next five years, local newspaper Valor Economico said on Thursday.
The U.S.-based buyout firm had bought a 20-percent stake in Brazilian Web hosting company Locaweb in September, for $68 million, to tap vigorous growth in one of the world’s largest Internet markets.
“Brazil is the highest priority for Silver Lake,” said the company’s Chairman and Co-founder David Roux in an interview with Valor. He said the investment would come through the group’s three global private equity fund units.
The most attractive targets for the company in Brazil are leading firms in areas such as data centers, video games, telecommunications and software, Roux told Valor.
The firm is also considering opening an office in Sao Paulo, Valor reported.
Global technology companies are picking acquisition targets in Brazil to take advantage of explosive growth in family income and jobs as well as growing interest in online commerce and mobility solutions.
By Inae Riveras