U.S. Private equity firm KKR & Co LP has agreed to acquire a controlling stake in Brazilian data center solutions provider Aceco TI for an undisclosed price. Sao Paulo-based Aceco has built more then 750 data centers in eleven countries across Latin America for the likes of telecom carrier TIM Participacoes, oil company Petroleo Brasileiro and Brazil’s Federal Police.
New York City-based KKR said it bought stakes in Aceco from General Atlantic and other shareholders. The news comes barely a month after the Brazilian company announced plans to go public.
Aceco TI was recently awarded contracts to install data centers and command and control centers for the 12 cities hosting the Brazil 2014 World Cup. According to local newspapers, Aceco’s clients include Sure, Fiat, Gerdau, Itaú and HSBC.
Founded in 1972 as a supplier of equipment and accessories for computers, Aceco TI began focusing on data centers from 2012 onwards. The company says it is currently building another 90 data centers and servicing more than 220 centers in the region.
“With the increased number of internet users, digital information and the use of cloud computing, the demand for data centers has and will continue to increase,” said Aceco’s chief Jorge Nitzan, who will hold a significant minority stake in the company and continue to run the business as CEO.
“Aceco is already a regional leader and we look forward to working with the team to support the company’s continued growth,” said Jorge Fergie, Managing Director and KKR’s Head of Brazil.
Since 1976, KKR has completed more than 230 private equity investments in portfolio companies, with a total transaction value in excess of $485 billion as of December 31, 2013. Of KKR’s global private equity portfolio companies, 14 have employees and run operations in Brazil, including First Data, Nielsen, and Go Daddy.
In addition to Brazil, Aceco TI has data centers in several Latin American countries, including Argentina, Chile, Colombia, Costa Rica, Mexico and Peru.