Cetip SA - Balcao Organizado de Ativos e Derivativos, Brazil’s biggest clearinghouse, agreed to buy GRV Solutions SA, a provider of credit-risk management services, for 2 billion reais ($1.17 billion) in cash and stock.
The acquisition “will allow a significant expansion of Cetip’s product portfolio,” the company said today in a regulatory filing. “GRV’s activities complement the products and services currently offered by Cetip and reach almost the same client base.”
Cetip plans to sell 900 million reais of local bonds maturing in seven years to finance part of the acquisition of 100 percent of GRV’s shares, the company said. After the deal’s conclusion, GRV shareholders will own about 9.4 percent of Cetip, according to the statement.
GRV cancelled in June a plan to sell shares in Brazil.
Itau BBA, a unit if Itau Unibanco Holding SA, and Bradesco BBI, a unit of Banco Bradesco SA, advised Cetip in the acquisition. Credit Suisse AG was the advisor for GRV.
Cetip rose 1.4 percent to 20.50 reais in Sao Paulo trading today.