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Brazil's Totvs To Buy Rival Bematech In Retail Software Push


Ron Burgundy
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Totvs SA, the largest Latin American producer of enterprise software, agreed on Friday to buy Brazilian rival Bematech SA for about 556 million reais ($156 million) in cash and stock, creating a company whose software will cater to more than half the restaurants, retailers and hotels in the country. Under terms of the transaction outlined in a public statement, Bematech shareholders will receive 9.35 reais in cash minus intermediary dividends, plus 0.0434 Totvs stock for each of their shares. Based on those terms, Totvs would be paying a premium of about 54 percent over Bematech's closing price on Thursday and the equivalent of 7.2 times Bematech's estimated operational earnings this year, according to Thomson Reuters calculations.

 

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