Global information services firm Experian has secured a majority acquisition deal for a 51% stake in Brazilian FinTech MOVA for 40 million Brazilian reais ($7.9 million) from Érico Sodre Quirino, a private investor, and Roberto Tesch, founder and CEO of MOVA.
MOVA is in the business of providing companies with the expertise and technology to perform data-driven credit assessments of their small and medium-sized enterprise (SME) end clients, according to a press release on Monday (May 16). The company aims to assist SMEs underserved by affordable credit in Brazil.
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The offerings provided by MOVA are “highly complementary” to the B2B solutions that Experian already has in place that facilitate SME credit access, per the release. Experian is planning to fund the deal using existing cash resources.
In addition to the cash consideration that Experian is giving the sellers, it is also providing an earnout that will be calculated on MOVA’s 2024 calendar year net revenues, according to the release.
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Under the agreement, Experian has a call option to acquire the remaining 49% stake between the calendar year 2026 and 2028. In addition, the sellers have an option exercisable during the calendar year 2029.
MOVA generated negative earnings before interest and taxes (EBIT) of R $11.7 million ($2.3 million) for the year ending Dec. 31, 2021. As of Dec. 31, 2021, the gross assets of MOVA were R$14.5 million ($2.9 million).
Experian aims to help people take control of their finances and assist businesses in making smarter decisions to achieve success. The company also works with lenders to help them lend more responsibly, and other organizations to assist in the prevention of digital fraud.
The company has a workforce topping 20,000 people in 44 countries and stays on top of new technology investments and innovation. Experian is listed on the London Stock Exchange under the ticker EXPN and is also a constituent of the FTSE 100 Index.
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