Experian (LSE:EXPN) PLC, the information services company, said it agreed to acquire a majority stake in Brazilian fintech MOVA.
London-listed Experian (LSE:EXPN) agreed to purchase a 51% stake from the sellers, private investor Érico Sodre Quirino and Roberto Tesche, founder and chief executive, for roughly US$7.9mln, which will be funded through its existing cash reserves.
MOVA, according to a statement, helps equip companies with the “expertise and technology to perform data-driven credit assessments of the SME [small and medium-sized enterprise] end clients.”
Experian added that SMEs are underserved for affordable credit in Brazil and that MOVA is tackling the issue.
The amount will be paid in the form of a capital injection into the business and an earnout based on the company’s net revenue in 2024, which will be payable to the sellers.
Between 2026 and 2028, Experian will have the option to purchase the remaining 49%, while the sellers will have an option to sell the assets in 2029.
For the year ending 31 December 2021, MOVA generated a negative EBITDA of US$2.3mln and had gross assets of US$2.9mln.