ITAÚ UNIBANCO HOLDING S.A. Enters into an Agreement with TOTVS S.A. for the Incorporation of a Joint Venture
April 12, 2022 at 07:55 pm EDT
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ITAÚ UNIBANCO HOLDING S.A.("Itaú Unibanco") informed, it entered into an agreement with TOTVS S.A. ("TOTVS") for the incorporation of a joint venture ("JV"), initially named TOTVS TECHFIN S.A. ("TECHFIN"), with the purpose of distributing and expanding financial services integrated into TOTVS's management systems, based on intensive data use, focused on corporate clients and their entire supply chain, clients and employees. According to this agreement, before closing the transaction, TOTVS will transfer the assets of its current TECHFIN operation to the company of which Itaú Unibanco will be a partner with 50% of capital stock, and each partner will be entitled to nominate half of the members of its Board of Directors and Board of Officers. Itaú Unibanco will pay BRL 610 million to TOTVS for its stake and up to BRL 450 million as earn-out after five years, subject to the achievement of the targets aligned with the growth and performance goals.
Additionally, Itaú Unibanco has committed to contributing to funding current and future operations, providing credit expertise and development of new products at TECHFIN. This partnership sets up a company that will combine technology and financial solutions, adding to the supplementary expertise of the partners to provide corporate clients with, in an expeditious and integrated manner, the best experiences in buying products directly from the platforms already offered by TOTVS.
Totvs SA is a Brazil-based company engaged in the information technology (IT) sector. The Company focuses on developing integrated management software solutions, collaboration and productivity platforms, as well as on consulting services. The Company mainly provides enterprise resource planning (ERP) applications, which electronically integrate the strategic and operational levels of a user company. It offers ERP software in various areas, such as administration, education, finance, industrial, human resources, customer service and logistics. The Company operates in Brazil, Argentina, Colombia, Mexico, Portugal and the United States, among others. It controls a number of subsidiaries, including Solucoes em Software e Servicos TTS Ltda, Datasul Argentina SA and Neolog Consultoria e Sistemas SA.