Brazil's Totvs buys tech company Consinco to strengthen retail ops

SAO PAULO (Reuters) - Brazilian software company Totvs SA TOTS3.SA said on Saturday its subsidiary Soluções em Software e Serviços TTS has agreed to acquire technology firm Consinco SA for 197 million reais ($48.71 million).

In a securities filing, Totvs added that an additional payment of up to 55 million reais will be made to Consinco if goals set for 2020 and 2021 are met.

Consinco, which provides management systems to supermarkets and cash&carry chains across Brazil and employs 400 people, has reported gross revenue of approximately 72 million reais in 2019, according to Totvs.

“With this move, Totvs increases its presence in the retail segment and consolidates its leadership in supermarkets, allowing synergies to be created with Consinco,” the software company said in the filing.

The transaction follows other acquisitions made by Totvs earlier this year. In October, the company bought a credit card manager supplier for 455 million reais to strengthen its fintech division.

Reporting by Gabriela Mello; Editing by Chizu Nomiyama