Information services company Experian will acquire 51% of São Paulo-based fintech firm MOVA Sociedade de Empréstimo entre Pessoas for BRL 40 million (£6.3 million).
MOVA provides companies, including non-banks, with the technology to perform data-driven credit assessments of their SME end-clients.
It was founded in 2019 and sees itself as a Credit as a Service (CaaS) financial institution. Companies can also use MOVA as a white label option and create customised credit products for their customers.
Experian calls MOVA “highly complementary” to its existing business-to-business solutions.
The Anglo-Irish entity is buying the Brazilian fintech from Érico Sodre Quirino, a private investor, and Roberto Tesch, founder and CEO.
The official details were brief, but based on its website, MOVA has 35,000+ contracts and BRL 550 million (£87 million) in operations.
Experian has a call option to acquire the remaining 49% stake between 2026 and 2028, whilst the sellers have a put option exercisable during 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 BRL 11.7 million (£1.8 million). As at 31 December 2021, the gross assets of MOVA were BRL 14.5 million (£2.3 million).
The Brazilian market – with a population of 212 million – is very attractive to foreign firms as they seek new customers and profits.
For example, last week, SME-focused fintech company Ebury revealed its intention to acquire São Paulo-based Bexs for an undisclosed sum.
London-headquartered Ebury explains that Bexs includes the businesses Bexs Banco (foreign exchange) and Bexs Pay (payments).
