Silver Lake is mulling the investment of an estimated $1 billion in the acquisition of Brazilian information technology firms over the next five years, reported Valor Economico. The private equity firm has embarked on an investment strategy aimed at expanding its presence and reach in Brazil.

Based in the US, Silver Lake last year purchased a 20 per cent stake in Locaweb, a Brazilian Web hosting company, for an estimated $68 million. Locaweb was Silver Lake’s first investment in Brazil’s dynamic technology industry. Locaweb, a pioneer in Latin America in the delivery of IT services over the Internet, serves customers ranging from individual consumers to large corporate clients.

The move was then targeted at establishing the firms offering in the country, given its vigorous growth. Brazil is one of the world’s biggest internet markets.

Speaking to Valor Economico, Silver Lake chairman and co-founder David Roux said Brazil is the company’s highest priority. In the strategy, the investments are to come through Silver Lake Group’s three global private equity funds units, said Roux.

The most attractive targets for the company in Brazil are leading firms in areas such as data centers, video games, telecommunications and software, Roux told Valor. The firm is also considering opening an office in Sao Paulo, Valor reported.

Global technology companies are picking acquisition targets in Brazil to take advantage of explosive growth in family income and jobs as well as growing interest in online commerce and mobility solutions. A burgeoning middle class in the Latin America’s biggest economy has resulted in an increasing demand for products and services, a fact most companies are keen on exploring.

Silver Lake is a US-based private equity firm focused on leveraged buyout and growth capital investments in technology, technology-enabled and related industries. The firm is a leading investment firm in the technology sector and among its most notable investments are Avaya, Sabre Holdings, UGS Corp., Skype, Seagate Technology and Instinet. Silver Lake operates through three primary businesses, all focused on technology investments.

Silver Lake is the leader in private investment in technology and technology-enabled industries. Silver Lake invests with the strategic and operational insights of an experienced industry participant. Through its affiliates, the Firm manages large cap and middle market technology private investment strategies as well as a credit investment strategy.

20 February 2011