Apax invests $1bn in Brazilian debut

Apax adds to private equity momentum in Brazil, following First Reserve and The Carlyle Group in recent deals.

Apax Partners have agreed to acquire a 54 percent stake in Tivit, an integrated IT and BPO services company, marking its first deal in Brazil. Apax Funds are committing 100 percent of the funding for the acquisition.

Tivit, which has 16 locations throughout Brazil, provides integrated services IT infrastructure, application systems and business process outsourcing services. Its clients include major banks, insurers, credit card companies, manufacturers, public utilities and retailers.

Martin Halusa, chief executive of Apax Partners, said, “Our first investment in Brazil advances our global strategy of investing in large companies that have strong, established market positions and the potential to expand.  We are excited by Brazil and have been actively sourcing opportunities in the country for some years.”

The size of Brazil’s economy proved especially attractive to Apax.

“Brazil is a large market, the 10th largest economy in the world, with exciting demographics, growth projections and macroeconomic stability,” said a spokesperson. “While we have no immediate plans to open an office in Brazil, it is an exciting market that we have been exploring for some years and are increasing our commitment towards.”

Apax Funds have agreed to five new investments over the past year: Sophos, a UK-based software company; Psagot, an Israeli fund manager; Marken, a UK-based clinical trials logistics business; Bankrate, a US-based Internet consumer banking marketplace; and now, Tivit.

Capitalizing on Latin America’s largest economy, there have been several significant debuts in Brazil this year.

Last week, First Reserve announced it is investing up to $500 million in Brazil-based Barra Energia, an independent exploration and production company. The firm is making the investment from its 12th private equity fund, which closed on about $9 billion last year.

In January, The Carlyle Group unveiled details of its first buyout in Brazil – a 63.6 percent state in CVC Brasil Operadora e Agencia de Viagens, an operator of tours and travel services in Brazil and throughout Latin America. Carlyle agreed to invest $250 million in the company.