Ufinet Expands with UTFO Acquisition to Boost Colombia's Connectivity
Deal News | Mar 17, 2025 | fitch media ventures
Latin American connectivity provider Ufinet plans to acquire Union Temporal de Fibra Optica Colombia (UTFO), a move expected to bolster Colombia's communications infrastructure landscape. The acquisition, which also includes Azteca Comunicaciones Colombia and Azteca's local pay-TV businesses, aims to reduce fragmentation in Colombia's connectivity market, enabling Ufinet to serve a wider range of customers. This strategic consolidation is anticipated to increase the utilization of UTFO's fibre network, aligning with Colombia's vision to become a digital economic hub. As the deal awaits regulatory and shareholder approvals, its completion is expected before mid-2025. This follows Ufinet's broader regional expansion strategy, with recent acquisitions in Brazil, Panama, and Costa Rica.
Sectors
- Telecommunications
- Data Processing and Hosting Services
- Media and Entertainment
Geography
- Colombia – The primary geography of interest as the acquisition targets Colombian companies and infrastructure, with significant implications for its digital economy.
- Latin America – Ufinet's overarching expansion strategy throughout the Latin American region, as illustrated by recent acquisitions in Brazil, Panama, and Costa Rica.
Industry
- Telecommunications – The acquisition involves fiber-optic backbone networks crucial for data transmission and infrastructure consolidation within Colombia's telecommunications industry.
- Data Processing and Hosting Services – The acquisition aims to improve data processing capabilities by expanding Ufinet's digital infrastructure and cloud computing reach in Colombia.
- Media and Entertainment – The deal involves Azteca's pay-TV business in Colombia, indicating an interest in expanding media service offerings in the region.
Financials
- USD 200 million – Contract awarded in 2011 to UTFO for building a fibre-optic backbone in Colombia.
- USD 106 million – Amount spent by UTFO thus far to connect a reduced number of communities compared to its original target.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Ufinet | Acquiring Company | Company | A leading communications connectivity provider in Latin America, expanding its infrastructure through strategic acquisitions. |
| Union Temporal de Fibra Optica Colombia (UTFO) | Target Company | Company | The owner-operator of Colombia's principal fibre-optic backbone network, targeted for acquisition by Ufinet. |
| Total Play | Selling Company | Company | One of the Mexican shareholders in UTFO, proposed to sell its stake in the transaction. |
| TV Azteca | Selling Company | Company | Part of the Mexican shareholders, involved in selling its stake in UTFO and part of the Azteca group. |
| Azteca Comunicaciones Colombia | Target Company | Company | Part of the Azteca group in Colombia, included in Ufinet's acquisition alongside UTFO. |
| Fitch Media Ventures | PE Firm | Company | The Private Equity firm involved in facilitating Ufinet's acquisition of UTFO. |
| Ministry of Information and Communications Technologies (MinTiC) | Government | Government | Colombian governmental body highlighting data traffic and connectivity developments within the country. |