- Group further sharpens its focus on security services.
Telefónica continued to rejig its cybersecurity assets as part of ongoing restructuring efforts at the Group to focus more on choice markets.
In its latest move, Telefónica|Vivo announced the sale of Telefónica Cibersegurança e Tecnologia do Brasil (CyberCo Brasil) to Telefónica Cybersecurity Tech for just over BRL 116.4m (€17.4m).
The transaction was announced as a ‘material fact’ to the Securities and Exchange Commission of Brazil (CVM). It essentially amounts to a reshuffling exercise to further concentrate Telefónica’s cybersecurity interests into a single entity (i.e. Telefónica Cybersecurity Tech).
As part of the deal, certain cybersecurity‑related assets, contracts, and employees were transferred from Vivo to CyberCo Brasil. The Brazilian operating business declared that the operation will allow it, as an “exclusive distributor” of Cyberco Brasil, to “strengthen itself in the cybersecurity market by expanding its portfolio of products and services”.
Vivo further noted that it will benefit from greater competitiveness due to the “global scale of the partner dedicated to cybersecurity activities”.
CyberCo Brasil adds further ballast to Telefónica Cybersecurity Tech, the central, Spain‑based holding company that has been set up within the operator’s Telefónica Tech division to manage the Group’s security interests (Telefónicawatch, #144, #145, and #148). It also incorporates security services specialist ElevenPaths.
Telefónica has been ramping up its security services presence, in line with the rejig. For example, it recently acquired Govertis Advisory Services, a Valencia-based consultancy; and training and simulation player iHackLabs (Telefónicawatch, #147). Telefónica also recently launched Telefónica Tech Ventures, an investment vehicle with a focus on cybersecurity.
Further, in Spain, Telefónica recently extended the remit of its insurance unit to cybersecurity. Telefónica Insurance is piloting a service called Ciberseguro Empresas, which aims to protect small and medium‑size enterprises against the economic and legal ramifications of cybercrime.
Telefónica has been refining the structure of businesses related to its three key development areas: big data and the Internet of Things; cloud services; and security. Three separate business areas are being established independently under the Telefónica Tech division with a view to potentially attracting outside investors. Telefónica Cybersecurity Tech was the first of the three to be created.