Experian, the global information services company, is pleased to confirm that it has agreed to acquire MOVA Sociedade de Empréstimo entre Pessoas S.A., a Fintech in Brazil that helps equip any company, including non-banks, “with the expertise and technology to perform data-driven credit assessments of their SME end-clients.”
SMEs are underserved by affordable credit in Brazil and MOVA “is tackling this issue.” MOVA is highly complementary to Experian’s existing Business-to-Business solutions, “facilitating access to credit by SMEs.”
As noted in the update, Experian agreed “to acquire 51% of MOVA from Érico Sodre Quirino, a private investor, and Roberto Tesch, founder and CEO (together, the “Sellers”), for cash consideration of R$40m (c.US$7.9m) on completion in the form of a capital injection into MOVA, and an earnout based on MOVA’s calendar year 2024 net revenues payable to the Sellers.”
Experian has “a call option to acquire the remaining 49% stake between calendar year 2026 and calendar year 2028, whilst the Sellers have a put option exercisable during calendar year 2029.”
The transaction “is expected to be funded from Experian’s existing cash resources.”
For the year ending 31 December 2021, MOVA “generated negative EBIT of R$11.7m (c.US$2.3m). As at 31 December 2021, the gross assets of MOVA were R$14.5m (c.US$2.9m).”
The transaction “is subject to approval by the regulatory authorities in Brazil.”
As covered, Experian claims to be the world’s “leading” global information services company.
During life’s “big moments” – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – the firm aims to “empower consumers and our clients to manage their data with confidence.”
They help individuals “to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organizations to prevent identity fraud and crime.”
They have 20,000 people “operating across 44 countries and every day we’re investing in new technologies, talented people, and innovation to help all our clients maximise every opportunity.”
They are listed on the London Stock Exchange (EXPN) and “are a constituent of the FTSE 100 Index.”