Brazilian payment platform Mercado Pago set to purchase Nikos DTVM. According to recent reports.
In a significant move, Mercado Pago, the financial services arm of MercadoLibre, has agreed to acquire Nikos DTVM, a securities distributor based in Brazil. The acquisition, which is subject to approval from Brazil's central bank, aims to enhance Mercado Pago's capacity to offer investment products to its clientele in Brazil.
The deal was reported by Bloomberg, but the financial specifics of the transaction remain undisclosed. The acquisition marks Mercado Pago's inaugural acquisition in Brazil, following a three-year period of collaboration with Nikos DTVM.
Approximately 35 Nikos employees, including CEO Breno Casiuch, will be integrated into Mercado Pago's team as a result of the acquisition. Breno Casiuch is the founder of the company Nikos DTVM, which he established in the year 2014.
Nikos DTVM specializes in the investment-as-a-service model and is authorized by the Central Bank of Brazil. The acquisition will enable Mercado Pago to independently structure and offer its own investment funds, fixed-income securities, and products from third parties.
Ignacio Estivariz, Mercado Pago Brazil digital banking vice president, stated that the deal aims to speed up the development of scalable products with an existing partner. He added that this acquisition represents a natural evolution of a solid commercial partnership that has already allowed Mercado Pago to expand and strengthen its investment portfolio.
It's worth noting that this acquisition does not necessarily imply that Mercado Pago will pursue similar acquisitions in other countries. The company confirmed that it approaches each potential acquisition on a case-by-case basis.
The acquisition of Nikos DTVM by Mercado Pago is expected to further develop Mercado Pago's investment services, which commenced in Brazil in 2022. The deal does not provide details about the role of GlobalData in the transaction.
In May, Mercado Pago disclosed plans to seek a banking license from the Central Bank of Argentina. This move, along with the acquisition of Nikos DTVM, indicates Mercado Pago's commitment to expanding its financial services offerings in Latin America.
GlobalData offers business intelligence reports, including a report on MobilePay's competitor profile and data insights. These reports may provide further insights into the strategic implications of the acquisition for both Mercado Pago and Nikos DTVM.
In conclusion, the acquisition of Nikos DTVM by Mercado Pago is a significant step in the company's strategy to expand its financial services offerings in Brazil. The acquisition will enable Mercado Pago to offer a wider range of investment products to its customers, strengthening its position in the Brazilian market.
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