Claro’s $750M Acquisition of Desktop Signals Intensifying Broadband Consolidation in Brazil
After a nearly two-year search for a buyer, Desktop, a fiber optic broadband provider serving the interior of São Paulo state, has been acquired by Mexican telecom giant Claro for R$4 billion (approximately $750 million). This deal marks a significant shift in the Brazilian broadband landscape and foreshadows further consolidation within the industry.
The Deal Details: A Premium for Growth
Claro will acquire 73.01% of Desktop’s capital, equivalent to roughly 84.7 million common shares, through its subsidiary Claro NXT Telecomunicações. The transaction values Desktop at a 44.6% premium over its closing share price on March 20, 2026, at R$20.82 per share. However, this price is slightly below the company’s IPO price of R$23.50 in July 2021.
Adjusting for net debt, estimated at R$1.585 billion as of September 2025, the effective transaction value is approximately R$2.4 billion. Claro is effectively valuing each of Desktop’s 1.2 million customers at around R$3,300.
The deal includes an escrow account of up to R$175 million to cover potential seller obligations, releasing funds gradually over five years. Completion is contingent upon regulatory approval from CADE (Administrative Council for Economic Defense) and ANATEL (National Telecommunications Agency), as well as a shareholder vote, after which Claro intends to seize Desktop private.
HIG Capital’s Successful Exit
For HIG Capital, which acquired control of Desktop through Makalu Brasil Partners I in 2020, this acquisition represents a substantial return on investment – approximately 6x their initial investment. HIG Capital played a pivotal role in Desktop’s expansion, growing its customer base from around 100,000 to 1.2 million through organic growth and strategic acquisitions.
Why This Acquisition Matters: Consolidation and Market Share
Claro’s acquisition of Desktop is a clear indication of the growing appetite for regional internet service providers (ISPs) in Brazil. The 6.2x EBITDA multiple paid by Claro is higher than Desktop’s current trading multiple of 4.5x, suggesting a willingness to pay a premium for market share and growth potential. This could set a benchmark for future acquisitions.
Desktop’s strong performance, with revenues of R$1.2 billion in 2025 (an 8% year-over-year increase), and its substantial customer base, particularly in the interior of São Paulo, contributed to the higher valuation. The acquisition will boost Claro’s broadband subscriber base to nearly 12 million, with 6 million customers in São Paulo state alone.
Failed Attempts and Shifting Strategies
The sale of Desktop wasn’t straightforward. In 2023, Desktop explored selling its 55,000-kilometer fiber optic network, similar to Oi’s model that created V.tal, but this strategy didn’t gain traction. Exclusive negotiations with Vivo (Telefónica) also fell through due to disagreements over price.
Future Trends in Brazilian Broadband
This acquisition highlights several key trends shaping the future of the Brazilian broadband market:
Increased Consolidation
The Brazilian broadband market is becoming increasingly consolidated, with larger players like Claro, Vivo, and TIM seeking to expand their reach by acquiring regional ISPs. This trend is driven by the desire to achieve economies of scale, reduce competition, and expand service offerings.
Focus on Fiber Optics
Fiber optic infrastructure is becoming increasingly important for delivering high-speed internet access. Claro’s acquisition of Desktop underscores this trend, as Desktop’s network is primarily fiber optic. Investments in fiber optic infrastructure are expected to continue to grow.
Expansion Beyond Urban Centers
Major telecom companies are increasingly looking to expand their services beyond major urban centers to reach underserved areas. Desktop’s strong presence in the interior of São Paulo makes it an attractive acquisition target for Claro, which aims to extend its reach beyond major cities.
Premium Valuations for Growth
Companies with strong growth potential and a substantial customer base are commanding premium valuations in the acquisition market. The 6.2x EBITDA multiple paid by Claro for Desktop demonstrates this trend.
FAQ
Q: What is the value of the deal between Claro and Desktop?
A: The deal is valued at R$4 billion (approximately $750 million).
Q: Who is selling Desktop?
A: HIG Capital and the company’s founders are selling their stakes.
Q: What will Claro do with Desktop after the acquisition?
A: Claro intends to take Desktop private and expand its broadband services in the interior of São Paulo.
Q: What was Desktop’s revenue in 2025?
A: Desktop’s revenue was R$1.2 billion in 2025.
Q: How many customers does Desktop have?
A: Desktop has 1.2 million customers.
Did you know? The acquisition price represents a 44.6% premium over Desktop’s share price on March 20, 2026.
Pro Tip: Keep an eye on regulatory approvals from CADE and ANATEL, as these are crucial for the deal to finalize.
Stay informed about the evolving Brazilian telecom landscape. Explore more articles on broadband market trends and industry analysis on our website.
