MOVA aims to help equip any company, including non-banks, with the expertise and technology to perform data-driven assessments of their SME end-clients. Experian said SMEs are underserved by affordable credit in Brazil and MOVA is tackling this issue. The company added that MOVA is complementary to its existing business-to-business solutions, facilitating access to credit by SMEs.
In a statement on the company’s website, Experian said that it has ‘agreed to acquire 51% of MOVA from Érico Sodre Quirino, a private investor, and Roberto Tesch, founder and CEO, for cash consideration of BRL 40 million (circa USD 7.9 million) 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 also has a call option to acquire the remaining 49% stake between calendar year 2026 and calendar year 2028, whilst the sellers have an 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 BRL 11.7 million (circa USD 2.3 million). As of 31 December 2021, the gross assets of MOVA were BRL 14.5 million (circa USD 2.9 million).
The transaction is subject to approval by the regulatory authorities in Brazil.
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