Summary: Claranet acquired Brazilian managed services provider CredibiliT Tecnologia for an undisclosed amount.
Details: Founded in 2009, CredibiliT is headquartered in São Paulo and has 40 employees and some £7.5m in annual revenue. It is one of only two Amazon AWS Premier Consulting Partners in Brazil and also has a growing Microsoft Azure business. Both AWS and Microsoft operate data centres in São Paolo which serve the wider Latin American market. CredibiliT has 100 customers including Editora Abril, Pepsico and TV Globo.
Angle: The deal may be Claranet’s first outside Europe, but it has a history of successfully expanding its geographic reach and service portfolio (beyond its home base in the UK) through acquisition. Europe has been the focus but it has now ventured outside this region for the first time. CredibiliT fits with the company’s strategic direction of moving to on-board and managing customers on public cloud and driving managed services revenue on top. Brazil also presents a market with meaningful upside and gives it diversity outside the UK and Europe. CredibiliT also presents good opportunities to cross-sell within Claranet’s existing Portuguese and Spanish operations, as well as serving as a potential springboard into other Latin American markets. Claranet has consolidated its European position, Latin America, and Brazil in particular, is a logical step for Claranet with stronger growth potential and a less crowded marketplace than North America or Asia-pacific.
Strategy: Claranet is using M&A to build a managed third party cloud capability that spans multiple markets and geographies. Its strategy, as it relayed to us, is to target the top few AWS partners in a given market and partner and/or acquire them. It covets the market position and installed customer base.