Cetip SA, a Brazilian clearinghouse reported it had agreed to buy information processing firm GRV Solutions in a deal valued at 2 billion reais ($1.17 billion). In a securities filing, the firm said GRV’s activities complement the current products and services offered by Cetip and reach practically the same client base.

The securities filing further stated that the deal will include a mix of cash and shares for all of GRV’s capital. GRV boasts of working on the processing and custody of information on vehicle financing transactions. On its part however, Cetip SA clears transactions involving fixed-income securities and over-the-counter derivatives.

Cetip SA – Balcao Organizado de Ativos e Derivativos, is Brazil’s biggest clearinghouse. GRV Solutions SA provides credit-risk management services and its purchase is via cash and stock.

Cetip plans to sell 900 million reais of local bonds maturing in seven years to finance part of the acquisition of 100 percent of GRV’s shares, the company said. After the deal’s conclusion, GRV shareholders will own about 9.4 percent of Cetip, according to the statement.

GRV cancelled in June a plan to sell shares in Brazil. Itau BBA, a unit if Itau Unibanco Holding SA, and Bradesco BBI, a unit of Banco Bradesco SA, advised Cetip in the acquisition. Credit Suisse AG was the advisor for GRV.

Cetip SA rose the most in six months after agreeing to the purchase of GRV Solutions SA, boosting the product offerings of Brazil’s biggest clearinghouse.

Cetip’s regulatory filing stated that it will pay 1.555 billion reais in cash and 455 million reais in stock for 100 percent of GRV. The clearinghouse will in part finance the purchase by selling 900 million reais of seven-year bonds in the local market. Upon completion of the transaction, GRV shareholders will own about 9.4 percent of Cetip, according to the statement.

Brazil, Latin America’s largest economy has recorded 387 mergers and acquisitions worth a total of $72.9 billion over the past 12 months, with an average disclosed deal size of $312.7 million.

CETIP – OTC Clearing House is a Central Securities Depository and derivatives registrar for operations carried out in over the counter markets. Created by financial institutions and the Central Bank of Brazil, CETIP commenced operations in 1986, providing more safety and efficiency to operations in the Brazilian financial market. CETIP is currently the largest custodian of corporate fixed income securities in Latin America.