WDCN3 WDC Networks

WDC Networks, registered as Livetech da Bahia Indústria e Comércio S.A. and traded on B3 under the ticker WDCN3, is a Brazilian company founded in 2004 by Vanderlei Rigatieri Junior and Francisco Sergio Day de Toledo. The company started out focused on marketing wireless technology and data network transmission products, initially serving niches such as radio-based internet. Over the years, it expanded its scope to broadband, electronic security, unified communications, data center infrastructure, professional audio and video, data security, the Internet of Things (IoT), and later solar photovoltaic energy. Its trajectory includes milestones such as entering the electronic security market in 2007, starting operations in FTTH (Fiber to the Home) telecommunications equipment in 2011, and opening an industrial distribution center in Ilhéus, Bahia, in 2012, within the local IT Hub, with tax incentives and a handling capacity of over 2 million units per year.

Over the course of its development, WDC adopted a business model based both on the distribution and assembly of telecommunications, IT and solar energy equipment, and on offering complete solutions in a rental format through the TaaS (Technology as a Service) model. This model, launched in 2013, structures equipment rental contracts with terms of up to 60 months and no purchase option at the end, turning traditional Capex investments into recurring operating expenses (Opex). The company maintains its own production at industrial plants in Bahia, assembling telecom, networking, security, professional audio and video, automation and solar energy products under the SKD (Semi Knock Down) model, combining imported inputs from suppliers in the United States, Europe, China and the domestic market with local assembly, seeking operational efficiency and tax benefits.

WDC Networks’ main activities were organized, up to 2024, into three operating segments: Telecom, Enterprise and Solar, which also reflected its revenue breakdown. The Telecom segment concentrates fiber-optic network solutions (FTTx), including signal distribution hubs, optical modems, fiber-optic cables, passive network components and fusion splicers, as well as data network and Wi-Fi products such as switches, routers and structured cabling. This arm also encompasses data center infrastructure, offering racks, cable trays, uninterruptible power supplies, fire systems and generators, often packaged as complete systems under the “as a service” model. The Enterprise segment brings together electronic security systems (IP cameras, access control, alarms and fire detection), cybersecurity solutions (firewalls, attack protection, internet access control), office and home automation (automation kits, Wi-Fi devices, electronic locks, lighting and climate control devices) and professional audio and video products and LED panels aimed at out-of-home media, events, churches and corporate environments.

The Solar segment, launched in 2020, added the supply of photovoltaic power generators to operations, with a plant in Extrema (MG) and a production unit in Salvador (BA) dedicated to assembling distributed-generation kits for plants, solar farms and projects of various sizes, including commercial and residential applications. These kits use imported components, integrated locally, and came to complement solutions already sold to internet providers, companies and integrators, allowing clean energy to be incorporated into telecommunications and IT infrastructure projects. In 2024, the company’s consolidated net revenue reached R$ 837.9 million, with the Telecom segment accounting for 57.1% of the total, Enterprise for 35.1% and Solar for 7.8%, which highlights the predominant weight of telecommunications and IT equipment and solutions in revenue generation. Between 2018 and 2024, the customer base grew from 3,560 to 6,408, reflecting increased participation in markets such as regional internet providers, systems integrators and large corporate clients.

WDC Networks’ commercial operations are mainly aimed at regional internet service providers (ISPs), telecommunications operators, security systems integrators, data centers, OOH media companies, building and home automation integrators, as well as corporate clients in various sectors, such as banks, condominiums, shopping malls and service companies. There is no dependence on a single buyer, since no individual customer accounted for more than 10% of net revenue in 2024. The company also develops specific solutions for “digital cities”, with public road monitoring projects for municipalities, integrating surveillance cameras and control rooms. In the cybersecurity field, the portfolio has been reinforced through acquisitions, seeking to meet increasing demand arising from regulatory milestones such as the General Data Protection Law (LGPD).

Geographically, WDC Networks has a strong national presence, serving customers in all Brazilian states through a decentralized logistics structure, with distribution centers in Ilhéus and Salvador (BA), São Paulo (SP) and Itajaí (SC), in addition to factories in Bahia. Internationally, the company operates a logistics hub in Panama and sales offices in Colombia and the United States, focused on serving Latin America. In 2024, 93.04% of net revenue was generated by customers based in Brazil, while 6.96% came from abroad, with a relevant portion of these foreign sales destined for Brazilian customers operating outside the country. WDCN3 shares, admitted to B3’s Novo Mercado segment after its IPO in 2021, reflect a corporate governance structure aligned with the practices required for widely held public companies.

WDC’s operations are subject to a set of technical and sector regulations, especially in the telecommunications, electrical equipment and data protection markets. Many of the products sold must be certified by the National Telecommunications Agency (Anatel), which requires compliance testing carried out by certification bodies and accredited laboratories. Certain items also require Inmetro certification, which grants registration for use of the conformity seal after technical evaluation by accredited bodies. The company is also subject to LGPD provisions in the processing of personal data, especially in businesses related to cybersecurity and digital solutions, as well as to the rules of the Regional Engineering and Agronomy Council of Bahia (CREA-BA) due to engineering activities related to system installation and projects. In addition, industrial and assembly operations must comply with federal environmental legislation, including the National Environmental Policy and the Environmental Crimes Law, with potential licensing and environmental liability obligations at different levels.

Regarding environmental, social and governance practices, WDC Networks reports initiatives related to providing solar energy solutions, which contribute to distributed generation of renewable electricity and reduction of CO² emissions for its clients. The Ilhéus plant uses rainwater harvesting and solar and wind power sources, indicating environmental efficiency measures at its own facilities. On the social front, the company runs donation programs, waste collection campaigns such as plastic on beaches and batteries, and holds charity fairs in support of aid organizations, in addition to investing in functional training and health benefits for employees and their families. In governance, it maintains an external audit committee and has hired a large independent audit firm since 2017, in line with its status as a publicly traded company listed on B3. With the evolution of the TaaS model and acquisitions such as a 51% stake in Infinite Consulting, specialized in network engineering and managed services, WDC is expanding its scope of operations from distributor and assembler of equipment to integrated provider of technology solutions and services for telecommunications, IT and distributed energy.

As a company listed on B3, with common shares WDCN3, WDC Networks positions itself as a supplier of technological infrastructure and connectivity, security, automation and solar energy solutions, with a predominant focus on corporate clients, integrators and digital service providers. The business model combines equipment sales, local assembly with tax benefits and long-term rental contracts, resulting in recurring revenue distributed across various segments and markets. This combination of distribution, partial production and technology services supports the company’s presence in multiple links of the telecommunications and IT value chain, both in Brazil and in other Latin American markets, while maintaining a predominance of revenue in the domestic market and greater exposure to the telecommunications segment in its earnings structure.