Evertec, a US-listed transaction processing company, has signed a definitive agreement with Brazilian financial software solutions provider Sinqia to acquire the latter in a deal worth BRL27.19 ($5.66) per share.

Besides, the consideration will include a daily cash ticking fee of up to BRL$1 ($0.21) per share based on the daily SELIC rate published by the Central Bank of Brazil between the signing and closing of the transaction.

Evertec said that the consideration will be in the form of 90% cash and 10% of its shares in order to benefit from an accelerated process to closing that minimises execution risk.

The transaction represents an approximate premium of 24% to Sinqia’s share price on 19 July 2023 and a premium of 22.6% to the prior 30-day volume weighted average price.

Based in Sao Paulo, Sinqia caters to financial institutions in Brazil including banks, fund managers, pension entities, non-banking financial institutions, and consortium administrators.

Sinqia CEO Bernardo Gomes said: “We are excited about the opportunity to join the Evertec family. Our strategy, operating philosophy along with our results driven culture will align well with Evertec and ensure a smooth integration.

“Combining our companies will enhance services for both of our growing customer bases as well as provide opportunities for our team members as Evertec continues to expand in attractive markets with strong macro tailwinds.”

The equity valuation of Sinqia is BRL2.32bn ($485m) and its enterprise value is BRL2.83bn ($591m), based on the closing price of its shares on 19 July 2023.

Through the acquisition, Evertec aims to improve its existing growth strategy, diversify the business, increase product offering, and expand addressable markets.

Evertec president and CEO Mac Schuessler said: “This is a highly complementary transaction, and together we plan to bring Evertec payments solutions to Brazil and Sinqia’s strategies to our Latin American markets.”

Subject to satisfaction of customary conditions and approvals, the deal is anticipated to be closed in Q4 2023.