Black Box Inks Agreement to Acquire 2S Brazilian Solns Integrator; Shares Slump

Shares of Black Box Ltd were trading 5% lower on 12 February despite the company announcing that it had signed an acquisition agreement with Brazilian technology firm 2S Brazilian Solutions Integrator.

In an exchange filing dated 12 February, the Navi Mumbai-based company said its step-down subsidiary, Black Box do Brasil Indústria e Comércio Ltda, has agreed to acquire 2S Inovações Tecnológicas.

The company has valued the deal at Rs 275 crore, payable at closing, subject to working capital adjustments and additional deferred payments, including performance-linked earn-outs over the next two years.

Black Box stated that it will complete the transaction after fulfilling customary closing conditions and securing the necessary consents and approvals. The company expects to close the acquisition by the end of March 2026.

The Brazilian business reported revenue of $53 million for the year ended 31 December 2024, under Brazil GAAP.

Black Box provides end-to-end solutions spanning design, technology provisioning, implementation, integration, managed services, security operations, and lifecycle optimisation, and employs around 230 people.

Black Box’s Sanjeev Varma said, “LATAM is a growing market, and this acquisition will create strong synergies in Brazil.” He added that the acquired business is expected to contribute around Rs 50 crore to EBITDA in FY27.

At 1:48 pm, the shares of Black Box were trading 1.04% lower at Rs 576.10 on NSE.

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