• Brazilian operator’s IT services arm picks up systems integration specialist for an undisclosed fee.
  • Deal goes through quietly, but regulatory approval already received.

Vivo buys Vita IT to grow network services offer

Vivo buys Vita IT to grow network services offer

Source: Vita IT

Telefónica|Vivo’s IT services arm has acquired systems integrator Vita IT as it continues attempts to build a services proposition beyond traditional connectivity and comms.

The Telefônica Infraestrutura e Segurança (TIS) unit agreed to buy 100% of Vita IT earlier this month and was handed regulatory approval this week.

Neither party has yet confirmed the deal publicly, but papers filed with Brazil’s antitrust body Conselho Administrativo de Defesa Econômica (CADE) show the deal went through on 25 August, “without restrictions”. The fee has not yet been disclosed.

In its CADE filings, TIS said the transaction represents an “opportunity to accelerate Telefónica’s plans to become qualified in professional and managed services, in addition to bringing commercial advantages in the services and hardware/software resale business”.

Further, Vita IT is expected to benefit from integrating with Telefónica to provide “not only an increase in the offer of products and services, but also an increase in the number of customers served”.

Founded in 2013, Vita IT’s primary focuses are on hardware and software product resale and managed network services. Before the sale, it was co‑owned by Chief Executive Paulo Ferreira, Sales Director Daniel Maack, and Technology Director Paulo Uehara. Vita IT is a Cisco Gold Partner, and calls IT infrastructure provider Pure Storage and data backup and security specialist Veeam its strategic partners. Its other technology partners include f5, Netskope, and VMWare.

Enterprise services growth

The Vita IT acquisition will serve to support further growth in Vivo’s business-to-business digital solutions proposition. In the twelve months to 30 June 2022, Vivo’s B2B digital services revenue jumped 36% to BRL 2.3bn (£380m/€440m). The segment includes Vivo’s cybersecurity, cloud, IoT and messaging, and ‘digital solutions’ — a broad vertical that covers hardware and equipment leasing and sales. It contributed 5% of the operator’s total revenues over the twelve months period.