Totvs, Datasul Print Merger

Shareholders of Totvs and Datasul have approved the Brazilian software makers’ merger. Totvs will issue 4.46m shares, a 14.3% stake, to Datasul shareholders, and will also pay them a BRL480m dividend. To help fund the transaction, Totvs has secured a BRL205m 6-year loan from development bank BNDES at TJLP plus 150bp, and plans to sell BRL200m in 2019 debentures, also paying TJLP plus 150bp. UBS says in a report it views the deal as accretive to Totvs, and finds the two companies’ customer bases – Datasul mostly sells to larger customers than Tovts’ – to be complementary.