Portugal Telecom purchase boosts Brazil prospects

Portugal Telecom’s plans to grow its presence in Brazil have been boosted by its acquisition of local IS/IT provider GPTI.
 
The carrier has taken a 100% equity stake in GPTI, paid for by a share issue at its Dedic subsidiary. GPTI investors will hold a 12.5% stake in Dedic, once regulatory approval of the deal is received, though the figure could hit 20% if performance targets for 2010 and 2011 are met.
 
GPTI was established nearly 20 years ago, and generated the bulk (75%) of its R$140 million (€54.8 million) 2009 revenues from recurring contracts.
 
PT plans to use GPTI to create an integrated IS/IT and business process outsourcing (BPO) company, while strengthening existing relationships in Brazil.