Experian plc (LON:EXPN), the global information services company, has announced that it has agreed to acquire MOVA Sociedade de Empréstimo entre Pessoas S.A., a leading fintech in Brazil that helps equip any company, including non-banks, with the expertise and technology to perform data-driven credit assessments of their SME¹ 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.
Experian have agreed to acquire 51% of MOVA from Érico Sodre Quirino, a private investor, and Roberto Tesch, founder and CEO, for cash consideration of R$40m (c.US$7.9m²) 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$2.9m).
The transaction is subject to approval by the regulatory authorities in Brazil.
1 SME = Small- and medium-sized enterprises.
2 Brazilian Real/US$ exchange rate of 5.06 as at 15 May 2022.
