Brazilian multi-play operators Vero and Americanet to merge

Brazilian independent multi-play operators Vero and Americanet have agreed to merge, creating a single larger scale player with about 1.4 million customers and 1.9 million revenue-generating units.

The combination of the pair will create the country’s largest ISP by RGUs and the fourth largest fibre broadband player.

Vero shareholders, including Vinci Partners, will hold 56% of the combined entity, with the remaining 44% held by Americanet shareholders including Warburg Pincus.

Fabiano Ferreira, currently CEO of Vero will serve as the CEO of the combined company, with Americanet chief executive Lincoln Oliveira will become chairman.

Both players offer streaming video services, along with internet and fixed and mobile telephony.

The pair said their businesses were complementary, with strengths in different parts of the country.

Vero recently completed the acquisition of Fixtell Internet, an ISP with strength in the central-western part of Brazil, notably in Valparaíso de Goiás.

Completion of the merger is subject to regulatory approval by markets regulator the Conselho Administrativo de Defesa Econômica (CADE) and telecom watchdog Agência Nacional de Telecomunicações (ANATEL).

The merger is part of a wider consolidation drive in a highly fragmented and competitive market. The other main broadband players are Telefónica, Oi and Alloha.