Experian shares were down 2.1% to 2,639p in early morning trading on Monday, following an update that the company was set to acquire a majority stake in Brazilian fintech group MOVA Sociedade de Empréstimo entre Pessoas S.A. (MOVA).
According to Experian, MOVA equips firms with technology to execute data-driven credit assessments of their SME end-clients, which reportedly serves Experian’s existing business-to-business offerings by providing access to credit by SMEs.
Experian announced that it had agreed to acquire a 51% stake in the fintech company, which the firm is set to purchase from private investor Érico Sodre Quirino and MOVA CEO Roberto Tesch for a consideration of $7.9 million in cash, on the back of a form of capital injection into MOVA.
Experian has also agreed to an earnout based on the group’s calendar year 2024 net revenues payable to Quirino and Tesch.
The information services company confirmed that it has a call option to acquire the remaining 49% of the group between calendar year 2026 and 2028, while the sellers have a put option exercisable over calendar year 2029.
The firm announced that the deal is set to be funded by Experian’s current cash resources.
MOVA reportedly generated a negative EBITDA of $2.3 million at the close of 2021, with gross assets of $2.9 million.