Brazil’s B3, Totvs join forces in fintech venture

B3, a Brazil-based financial exchange operator recently reached a partnership deal with Totvs, a software firm. Both firms plan to make a joint investment of BRL 600 million (US$116 million) into TFS Solucoes em Software, a subsidiary of Totvs.

This new deal became public after both firms released their separate securities filings on Monday.

Totvs will retain control of its majority stake in TFS shares while allowing B3 to acquire a portion of the subsidiary, as both firms seek to position TFS as “the main option in B2B technology for the financial sector.”

Offerings and products included in TFS’ portfolio are a platform that provides various operational solutions to investment funds, a platform that provides key banking solutions aimed at emerging lenders, and a platform that serves private label card operators.

“With independent and renewed management, an initial net cash position of BRL 650 million, total autonomy and focus on the booming B2B technology sector for the financial market, TFS intends to be the main B2B technology option for the financial sector,” the companies said.

FollowingTotvs’ partnership with B3 it became necessary that TFS’s business and operations become separate from the group and Totvs believes that the partnership is worth the change, calling it “an example of how we have sought creative ways to generate even more value…through the creation of joint ventures and partnerships,” the company said.