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Brazil’s TOTVS taps Itau Unibanco to create financial services joint venture – Metro US

Brazil’s TOTVS taps Itau Unibanco to create financial services joint venture

FILE PHOTO: Man is reflected in an Itau branch window
FILE PHOTO: Man is reflected in an Itau branch window in Rio de Janeiro

By Carolina Pulice and Peter Frontini

(Reuters) -Brazilian software company TOTVS and Itau Unibanco said on Tuesday they are creating a joint venture to be called TOTVS Techfin, aiming to offer financial services to small and medium-sized companies.

Each of the companies will hold a 50% stake in the venture, which will operate a digital platform to integrate “a complete range of financial services,” they said in a securities filing.

As part of the deal, TOTVS will yield to the joint venture all of its shares of its subsidiary Supplier Administradora de Cartoes de Credito SA.

Itau will pay TOTVS up to 860 million reais ($184 million), for joint venture shares, of which 410 million reais will be paid in cash and the remainder will be paid after 5 years, upon the achievement of goals.

“This combination of efforts will benefit small and medium-sized companies and the entire production chain in the country”, said TOTVS.

The closing of the deal depends on approvals from Brazil’s antitrust watchdog and central bank.

($1 = 4.6735 reais)

(Reporting by Carolina Pulice and Peter FrontiniEditing by Richard Pullin)

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