A computer generated image of UOL's flagship data center
(WEB HOST INDUSTRY REVIEW) — Brazilian Web hosting provider Universo Online (www.uol.com.br) announced on Wednesday that it has completed the acquisition of US-based IT services firm Diveo Broadband Networks (www.diveo.net) for about $413 million.
UOL said that it will merge Diveo’s operations with its subsidiary DH&C Outsourcing.
“The amount paid to the (Diveo) shareholders was BRL693.5 million, and an additional amount of BRL19.4 million was deposited in an escrow account for future adjustments,” UOL said. “This merger will increase DH&C’s customer base and will enhance its scale and synergy, reinforcing DH&C’s notable position in the Brazilian data center and outsourcing market.”
Founded in 1996, Diveo first began offering broadband and Internet access services.
The company has since expanded into the Brazilian and Colombian markets, while broadening its services to include data center solutions in 2000. Diveo has data centers in Argentina, Brazil, Colombia and Miami.
In other UOL news, Portugal Telecom has sold its 28.78 percent stake in Universo Online for $207 million. The company did not disclose the financial terms of the sale.
The UOL stake was acquired by Brazilian businessman Joao Alves de Queiroz Filho, the largest individual shareholder in consumer firm Hypermarcas.
In addition to offering a wide range of Internet services, UOL also offers price comparison service, auction site and job search engine.
Some analysts say the sale could be tied to antitrust issues. A few months ago, Portugal Telecom acquired a minority stake in Brazilian telecom Tele Norte Leste Participacoes, which in turn controls UOL’s largest local competitor, IG.
The telecom’s acquisition of Tele Norte Leste Participacoes is still under evaluation by local antitrust authorities.
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