TIVIT has engaged BofA Securities to carve out its Brazilian data centers business, said two sources familiar with the situation.
The process is in its early days, added those same sources.
The carve out comes on the heels of a joint venture between Digital Realty Trust and Brookfield Asset Management that acquired Brazilian data center provider Ascenty for USD 2.25bn (BRL 9.17bn) less than a year ago. The SPV has since announced plans to build a new 6.3MW facility in Santiago, Chile.
TIVIT’s data centers business has been described as much smaller than Ascenty’s data center unit, which counts blue chip companies amongst its tenants. However, TIVIT’s data center segment does have size and scale in a market where competition is scarce aside from those two. TIVIT has data centers in other Latin American countries, but those are not part of this current process.
Elsewhere, Mexican telecoms company Axtel is working with Citi to sell three of its six data center centers in the country.
TIVIT operates three data centers in Brazil, two of which are located in the city of Sao Paulo and the third in Rio de Janeiro. The data centers collectively carry 20MW and canvass 14,000 square meters, according to an article in techinbrazil.
TIVIT has been a portfolio company of APAX Partners since 2010. The company has tried to go public on multiple occasions but has failed to do so, according to published reports. Overall, the company provides digital solutions in 10 Latin American countries spread across four lines of business: Digital Business, Cloud Solutions, Digital Payments and Technology Payments.
According to select financial information, TIVIT recorded USD 139.9m in EBIT from USD 1.57bn in revenues in 2018, up from USD 121.8m in EBIT and USD 1.46bn in revenues, year-over-year.