Black Box Limited has announced the definitive agreement for its step-down subsidiary, BLACK BOX DO BRASIL, to acquire 2S Inovações Tecnológicas (“2S”), a leading Brazilian solutions integrator. The acquisition is valued at approximately Rs. 275 Crores, subject to adjustments and earn-outs. This strategic move aims to expand the Company’s presence in Latin America and strengthen its portfolio in high-value managed and recurring services, with closing anticipated by the end of March 2026.
Strategic Acquisition in Latin America
Black Box Limited has entered into a definitive acquisition agreement through its subsidiary, BLACK BOX DO BRASIL INDÚSTRIA E COMÉRCIO LTDA., to acquire 100% equity stake in 2S Inovações Tecnológicas (“2S”) based in Sao Paulo, Brazil. The transaction is expected to close by the end of March 2026, pending customary closing conditions.
The acquisition cost is set at approximately Rs. 275 Crores, payable at closing, with additional deferred payments and earn-outs linked to performance over the subsequent two years.
Target Entity Profile (2S)
2S is a long-standing Brazilian solutions integrator, established in 1992, specializing in IT infrastructure, technologies, and managed services. It caters primarily to private-sector customers across various business segments.
Key Financials and Size:
- Employees: Approximately 230 employees.
- Revenue (FY 2024): US$ 53 million (as per Brazil GAAP).
- Incorporation Year: 1992.
Key Service Offerings:
2S provides an end-to-end technology portfolio, including:
- Enterprise Networks: LAN, WAN, SD-WAN, Wi-Fi 6/6E/7, IoT.
- Datacenter and Cloud Solutions: Including ACI, Hyperconverged Infrastructure, and Multi-Cloud services.
- Cybersecurity and Network Protection: Covering Zero Trust, SASE, Firewalls, and Endpoint/Data Protection.
- Managed Services: Maintenance, Monitoring & NOC (24×7) with 3 levels of internal scaling.
Rationale and Impact
The primary objective of acquiring 2S is to align with the Company’s long-term strategy to expand its presence in Latin America. This move is intended to strengthen its end-to-end service portfolio and accelerate growth, specifically focusing on high-value managed and recurring services within the region.
The transaction is classified under the Information Technology infrastructure industry. It has been confirmed that the acquisition does not fall under related party transactions, and no promoter or group companies of Black Box Limited have any interest in 2S.
Source: BSE
