Grain Management Acquires Conexao, Announces LatAm Presence

Conexão Group’s unique regional services make it an exceptional growth partner in a rapidly expanding market

WASHINGTON--(BUSINESS WIRE)--Grain Management, LLC ("Grain" or the “Firm”), a leading private investment firm exclusively focused on broadband technology and the global communications sector, announced today that it has acquired Conexão Group (“Conexao”), one of the largest high speed internet service providers in the northeast and southeast regions of Brazil.

Conexao is one of the fastest growing Brazilian providers of high-speed internet, servicing more than 450,000 subscribers and over 20,000 corporate subscribers. The company also owns the entirety of its approximately 8,400 fiber route mile network, making it a strong platform for growth. As the center of many telecommunication expansion opportunities in Latin America, Brazil is prime for investment in what is currently a highly fragmented market. The strong uptick in broadband demand coupled with compelling macroeconomic and exchange factors also supports inbound activity from seasoned investors looking to partner with strong businesses.

“The opportunity set for both strategic and organic growth through the acquisition of Conexao is solid,” said David Grain, founder and CEO of Grain. “Telecommunications growth in Brazil is robust and aligns with the macro trends around which our Firm invests. The capital and expertise that Grain brings to this landscape presents a compelling investment case for our team and our investors.”

Ricardo Rodriguez, Principal on the Grain investment team, stated, “Conexao has a track record of excellence, an exceptional management team, and a talented employee base, all of which marries well with Grain’s data-driven operational approach. The present scarcity of fiber-to-the-home in Brazil makes Conexao an ideal platform for expansion in a strong, growing regional market.”

“In terms of values, industry focus, track record, and cultural fit, Grain meets all of our needs for an impactful partner,” said Conexao CEO Gilbert Minionis. “The expertise at Grain has the potential to create a significant boost to our business as we continue to grow.”

BTG Pactual S.A. served as financial advisor to Grain in connection with this transaction. Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados and Alston & Bird served as legal counsel.

About Grain Management

Grain Management, LLC is a leading private investment firm that focuses on broadband infrastructure and technology companies that connect the world to the information economy. Founded in 2007, Grain invests exclusively in the telecommunications sector, employing a rigorous, data-based process buoyed by deep industry expertise to identify investment opportunities in key areas of telecommunications infrastructure, including fiber networks, wireless spectrum, and cell towers. For more information visit www.graingp.com.

About Conexão Group

Conexão Group provides broadband services using primarily fiber to the home technology to over 450,000 homes and 20,000 business customers throughout six states in Brazil in the Northeast (Rio Grande do Norte, Paraiba, Ceara and Bahia) and Southeast (Sao Paulo and Minas Gerais). Conexão Group operates multiple brands including, CABO, Multiplay, Conexao, Outcenter, and StarWeb among others.

Conexão Group is proud of its superior customer experience and decades worth of cutting edge technology in providing broadband connectivity, subscription TV, telephone services and IT Corporate Services. Its owned infrastructure spans over 13,500 kilometers (approximately 8,400 fiber route miles) of fiber optic and high-tier HFC networks, reaching over 1.4 million customers.