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December 22, 2020

Brazilian retailer Magazine Luiza inks $56m deal to acquire payments firm Hub

Magazine Luiza, through its payments arm Magalu Payments (MagaluPay), has inked a deal to take 100% ownership of the payments firm Hub Prepaid Participações.

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Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
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Under the agreement, the retailer will pay BRL290m ($56.6m) for purchasing the payment institution.

Hub Fintech began its operations in 2012 and is regulated by the Central Bank of Brazil.

Its subsidiary Hub Payments is fully-integrated with the Brazilian Payment System (SPB) and the Instant Payment System (PIX).

Hub, which employs over 250 people in Brazil, manages nearly four million active digital accounts of customers.

It also offers prepaid cards, which has processed payments worth nearly BRL6.6bn ($1.28bn) in the past one year.

Hub generated BRL159m ($31m) of gross revenue in the same period.

It is a banking-as-a-service (BaaS) platform and a “leader” in prepaid card processing services, noted Magalu.

It serves customers in distinct verticals including retail, mobility, financial institutions and fintechs.

Apart from digital accounts, it provides direct connection to lotteries and ATMs, and an API platform for processing payments.

It also offers a complete system for issuing prepaid cards, and a card customisation centre that can produce 30 million cards per year.

By integrating with Hub, MagaluPay will provide its individual and business customers with access to a free financial products and services platform, fully-integrated with SuperApp.

Customers can use the digital account to make purchases, deposits, transfers, bill payments, cash withdrawals, recharges and more.

Additionally, they can transact using the prepaid cards, which reflects the balance of the digital account.

The acquisition completion is subject to the approval of the Administrative Council for Economic Defense (CADE) and the Central Bank of Brazil.

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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