SAO PAULO – Telefonica Brasil said on Monday that its Telefonica Data (TData) unit acquired Terra Networks Brasil, which owns the Terra portal, for 250 million reais ($75.5 million) from SP Telecomunicações Participações (SPTelecom).
“The purpose of the Transaction is to expand and integrate the commercial offer of digital services that can add immediate value to the customer base of TData and of the Company; as well as generating TData’s service offers to Terra Networks’ customer base and subscribers and, thanks to the national presence of Terra Networks’ operation and expertise, generate leverage for TData’s advertising business,” Telefonica Brasil said in a statement.
SPTelecom is one of the controlling shareholders in Telefonica Brasil, the statement said.
The acquisition is being executed “in a single installment, with no need for any financing, using only the cash available from TData,” Telefonica Brasil said.
KPMG Corporate Finance Ltda. performed a valuation analysis of Terra Networks, the company said.
Telefonica creates “digital media products for mobile and advertising and Terra Networks has know-how in selling, attending and operating digital services for specific customers,” the company said.
The deal does not require regulatory approval, Telefonica Brasil said.