H.I.G. Capital Exits Desktop S.A. with $750M Sale to Claro
Event summary
- H.I.G. Capital sold its Brazilian ISP portfolio company Desktop S.A. to Claro for $750M (R$4B) including debt.
- Desktop grew from 150,000 to 1.2 million subscribers under H.I.G.'s ownership through organic growth and 10 acquisitions.
- The sale follows Desktop's IPO in February 2021, marking it as Brazil's first publicly listed ISP.
- Desktop's fiber network spans 58,000 km serving over 200 cities in São Paulo.
The big picture
H.I.G. Capital's exit underscores the strategic value of regional ISPs in Brazil's expanding broadband market. The sale to Claro, a subsidiary of América Móvil, highlights the growing interest from major telecom players in acquiring scalable fiber networks. With $74B in AUM, H.I.G.'s successful growth and eventual exit of Desktop demonstrate the firm's ability to identify and capitalize on high-potential assets in emerging markets.
What we're watching
- Consolidation Trends
- How this deal signals further consolidation in Brazil's competitive ISP market.
- Regulatory Approval
- The pace at which Brazilian authorities approve the transaction, given Claro's existing market position.
- Claro's Integration Strategy
- Whether Claro can effectively integrate Desktop's operations to enhance its fiber footprint in São Paulo.
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