Cade approves the merger of Itaú and Totvs to create a new company

Itaú Unibanco and Totvs will create a techfin, which is a technology company that provides financial solutions for organizations that want to modernize this area in order to leverage their business, facilitate banking transactions and reach customers who are looking for more practical processes.

Thus, the Administrative Council for Economic Defense (CADE) approved the creation of the Joint Venture (JV), which is the union of two companies with the objective of carrying out a common economic activity.

“Cade approved without any restrictions”, the company informed, noting that “the decision will become final within 15 calendar days from publication. However, the consummation of the transaction is subject to the fulfillment of other conditions precedent”.

Totvs JV

In April, Itaú announced that it intended to pay Totvs up to R$1.06 billion in a joint venture to offer its financial services to micro and small companies.

So, at first, the new company will be called Totvs Techfin. Therefore, the agreement determines that Totvs, before closing the transaction, will collaborate with the assets of its current Techfin operation for the institution that Itaú Unibanco will become a partner with 50% of the share capital.

Thus, for the participation, Itaú will pay Totvs R$ 610 million. And, as a complementary price (earn-out), it will pay up to R$ 450 million after 5 years according to the achievement of goals aligned with the growth and performance objectives.

In addition, Itaú Unibanco will help with funding for current and future operations, credit expertise and the creation of new products at Techfin.

feedz

In addition, on September 1st of this year, Totvs announced the acquisition of 60% of Feedz Tecnologia for R$ 66 million.

The agreement also provides for the acquisition, by Totvs Tecnologia, during the first half of 2025, of the remaining shares, which correspond to 40% of Feedz’s share capital. Thus, the price will be determined according to the terms and conditions agreed by the parties, which will consider, among other factors, the achievement of goals and performance.

Feedz is a Brazilian HR Tech specialized in SaaS solutions for Engagement, Performance and Organizational Climate. Mainly in the OKR (Objectives and Key Results) tools, performance evaluation, feedback, climate surveys and pulse engagement.

Image: totvs.com

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