KKR seals debut Brazil investment

The firm will invest from its $9bn North America fund to acquire Brazilian data services company Aceco TI.

Kohlberg Kravis Roberts will acquire São Paulo-based data services company Aceco TI from General Atlantic for an undisclosed sum, according to a statement.

The transaction marks KKR’s debut investment in Brazil. The deal was made in partnership with Aceco chief executive officer Jorge Nitzan, who will hold a minority stake in the company and retain his position. KKR is making the investment from its North America Fund XI, which closed on $9 billion earlier this year.

“With the increased number of internet users, digital information and the use of cloud computing, the demand for data centers has and will continue to increase,” Nitzan said in the statement. “[O]ur new partnership with KKR will help fuel further growth across Latin America and beyond. We have evolved as technology has evolved and this is an important next step in the long journey of Aceco's evolution.”

KKR declined to comment.

Aceco has built more than 750 data centers in Latin America, including the installation of data and command centers in 12 Brazilian cities hosting the 2014 FIFA World Cup.

While 14 of KKR’s portfolio companies have employees and operations based in Brazil, including consumer research firm The Nielsen Company and e-commerce payment provider First Data Corporation, Aceco marks the first Latin America-based company KKR has acquired, according to its website. 

Private equity deal activity in Brazil declined in 2013. The 80 private equity transactions worth a combined $4.58 billion in 2012 fell to 55 deals with a total value of $2.78 billion in 2013, according to data from the Emerging Markets Private Equity Association.