Intel invests in Digitron to get larger influence in Latin America

Intel Capital, Intel Corporation's venture investment group, announced it has agreed to invest in secured convertible notes issued by Digitron, the leading manufacturer of PC motherboards in Brazil. The investment will help to further accelerate Digitron's expansion plans and stimulate Brazil's PC industry growth and innovation capabilities. The transaction is subject to satisfaction of standard closing conditions.

"Intel Capital sees significant growth opportunities in Brazil," said Arvind Sodhani, president of Intel Capital. "Providing financial support to companies such as Digitron will help accelerate the development of innovative computing platforms in Brazil and throughout the region. Through the business agreement, Intel also plans to share our best practices to expand and enrich PC manufacturing capabilities in Brazil."

Founded 19 years ago, Digitron assembles motherboards and other computer parts. A supplier to the leading PC manufacturers in Brazil, the company plans to bring new technologies to Brazil and has invested in its assembly lines to launch platforms that require new manufacturing processes. These include lead-free compliant motherboards and motherboards that support dual core CPUs.

"We have been collaborating with Intel for a long time, and the new investment and strategic engagement equals a great working relationship," said Sung Un Song, Digitron CEO and founder. "Our focus now is on building more boards using leading-edge technology and completing the new facility in Manaus."

According to IDC, the number of PCs sold in Brazil in the first half of 2005 was 44 percent higher than the same period in 2004. To further promote PC adoption in the country, the federal government launched a new entry-level PC program named "PCs for everyone," and has also created tax incentives and favorable financing for the purchase of locally manufactured PCs.

"Intel Capital is working closely with Digitron to support its growth objectives and will collaborate with the company on its plan to become a world-class manufacturer," said David Thomas, managing director, Intel Capital Latin America. "Our goal is to see that PC manufacturers in Brazil have access to the latest technologies available worldwide for motherboards, while they benefit from government efforts to encourage the local PC industry."

Intel Capital has been investing in early- and later-stage technology companies in Brazil and Latin America since 1999. To date, Intel Capital has invested in 12 companies in Brazil, and 30 companies in the region.