There has been some interesting network M&A in the direction of Latin America this morning. Transtelco has announced the acquisition of Neutrona Networks, significantly expanding its reach and focus.
Until now, Texas-based Transtelco has focused on bandwidth between markets in Mexico and the southern USA, a region in which it operates 15,000 route miles of longhaul and metro fiber. Miami-based Neutrona, on the other hand, specializes in software-defined network services between US markets and most major markets in South and Central America and has roots in financial networking.
The two are definitely complementary and are both focused on a similar pan-American opportunities, and Neutrona does substantial business in Mexico that Transtelco will surely be bringing on-net. And Neutrona's SDN capabilities will enhance Transtelco's ability to serve its existing enterprise customers both in capability and reach.
Yet exactly where the combined company will go in other markets is probably a longer term story that is worth watching. Further consolidation opportunities might be in the works that would give Transtelco a deeper infrastructure in Neutrona's markets elsewhere in Latin America to match what it has in Mexico. The deal gives them a lot of beachheads to work with should that be the goal.
Financial terms were not disclosed, but UBS advised Transtelco while Bank Street Group advised Neutrona. The acquisition financing came from Deutsche Bank. Neutrona Networks co-founders Luciano Salata and Mateo Ward will join Transtelco's executive team.