In a strategic move to enhance its information technology offerings, Positivo Tecnologia, a Brazilian technology company, has signed an agreement to acquire Algar TI Consultoria SA, a managed IT services (MSP) provider formerly part of the Algar Group. Financial terms of the deal were not disclosed.
This is technology M&A deal number 71 that ChannelE2E and MSSP Alert have covered so far in 2024. See more than 2,000 technology M&A deals for 2024, 2023, 2022, 2021, and 2020 listed here.
Positivo Tecnologia, founded in 1989, is based in Curitiba, Puerto Rico. The company has 4,294 employees listed on LinkedIn. Positivo Tecnologia’s areas of expertise include technology, hardware, software, computers, smartphones, smart home devices, servers, payment machines, technical support to companies and public institutions, IT equipment rental for corporations, and educational technologies.
Algar TI is part of the Algar Group, which was founded in 1930 and is based in Uberlândia, Minas Gerais, Brazil. The parent company has 1,605 employees listed on LinkedIn. Algar TI’s areas of expertise include managed IT services within the larger conglomerate's technology and telecommunications operations.
The acquisition, which is currently pending approval from the Administrative Council for Economic Defense (CADE), aims to solidify Positivo Tecnologia's position in the IT services sector by integrating Algar TI Consultoria's extensive expertise and client base into its operations.
Business Integration
Notably, the acquisition does not include the Customer Experience (call center) unit of Algar Tech, focusing instead on the company's managed IT services operations. The company expects this strategic decision to propel Positivo Tecnologia into a leading position in the technology services market, providing comprehensive solutions from hardware infrastructure to information technology management services across Brazil and Latin America.
Helio Bruck Rotenberg, President, Positivo Tecnologia, commented:
“This movement significantly accelerates our business diversification strategy. It strengthens Positivo Tech Services, our managed IT services business unit, and expands our offer of hardware, services, and solutions. Adding more than 4,500 highly specialized employees from Algar TI Consultoria enhances our capabilities in the corporate market in Brazil and Latin America.”
Enhanced Service Portfolio
With the acquisition of Algar TI Consultoria, Positivo Tecnologia says it aims to broaden its service offerings in the information technology sector.
This move is intended to complement Positivo Tecnologia's existing range of services with Algar TI Consultoria's managed IT services capabilities, according to the company.
Rodrigo Guercio, Vice President for Corporate Business, Positivo Tecnologia, stated:
“The joining of forces between our Company's hardware infrastructure offerings and strategic partnerships, combined with Algar TI Consultoria's experience in services, creates a true technology powerhouse. This enables us to offer unique end-to-end Digital Transformation solutions and capture growth opportunities in the integrated digital services market.”
Growth and Expansion
The acquisition has the potential to significantly impact Positivo Tecnologia's business structure, increasing its revenue from IT services and solutions to approximately 18% of its total revenue, according to the company.
The move is part of Positivo Tecnologia’s strategic plan to expand its technology service offerings, aiming for higher profitability, recurring revenue, and reduced need for working capital.
