investmentbrazil » Finance and Banking Brazil

Additional FY 2015 Funding of $96.9 Million Available

hh01 — Sat, 07 Feb 2015 19:16:07 +0000

A majority of funding targeting Western Drought Response and Rural Water Projects
WASHINGTON – Bureau of Reclamation Commissioner Estevan López today released the spending plan for $96.9 million provided to Reclamation in the Consolidated and Further Continuing Appropriations Act of 2015. The funds will go toward Western drought response and rural water projects, among other important activities.
“Reclamation and its partners are confronting a growing gap between supply and demand in river basins throughout the West,” López said. “The funding released today will help us meet immediate needs and support long-term infrastructure and environmental needs of key water projects.”
The funding is divided among six areas:
Western drought response ($50 million),
rural water projects ($31 million),
water conservation and delivery ($8 million),
fish passage and fish screens ($4 million),
facility operation, maintenance and rehabilitation ($2.9 million),
environmental restoration and compliance ($1 million).
Extreme and prolonged drought has gripped major river basins across the West. In many areas, mountain snowpack is far below average for this time of year. The $50 million provided for Western drought response will address seven projects:
Central Valley Project, which includes funding for the Delta Division, Friant Division, Shasta Division and water and power operations, California ($19.9 million);
WaterSMART Grants, Title XVI Water Reclamation and Reuse Program, and Drought Response and Comprehensive Drought Planning ($14 million);
Lower Colorado River Basin Drought Response Action Plan, California, Arizona and Nevada ($8.6 million);
Native American Programs ($4 million);
Yakima River Basin Water Enhancement Project, Washington ($2 million);
Lewiston Orchards Project, Idaho ($1 million);
Carlsbad Project, New Mexico ($500,000).
Reclamation based its Western drought funding on a thorough review at national, regional and program levels, to ensure a balanced approach. In some cases the funding allows Reclamation to accelerate selected projects to meet high-priority needs sooner than it would in absence of the new funding. In other cases it allows Reclamation to respond immediately to many of the West’s most critical drought-related needs.
Reclamation is also advancing the completion of its authorized rural water projects with the goal of delivering potable water to tribal and non-tribal residents within the rural water project areas. A total of $31 million will go toward five projects:
Pick-Sloan Missouri Basin Program – Garrison Diversion Unit, North Dakota ($10.3 million);
Rocky Boy’s/North Central Montana Rural Water System, Montana ($6.8 million);
Fort Peck Reservation/Dry Prairie Rural Water System, Montana ($6.6 million);
Lewis and Clark Rural Water System, South Dakota, Iowa, Minnesota ($6.6 million);
Eastern New Mexico Water Supply, New Mexico ($700,000).
The remaining $15.9 million will go toward nine projects:
fish screen and restoration projects in the Central Valley Project, California ($2.5 million);
Yakima River Basin Water Enhancement Project at Cle Elum Dam, Washington ($1.5 million);
agricultural water use efficiency projects within the Central Valley Project, California ($5 million);
Endangered Species Recovery Implementation Program on the Platte River, Colorado, Nebraska and Wyoming ($2 million);
water conservation projects on Rogue River Basin Project, Oregon ($1 million);
water leasing for supplemental water on the Middle Rio Grande ($1 million);
rehabilitation work at the Coleman National Fish Hatchery and Keswick Dam Powerplant in the Central Valley Project, California ($1.3 million);
renovation of the Olmsted Powerplant, Utah ($1 million);
repairs on the Colorado River Basin Salinity Control Project, ($650,000).

BNP Paribas Settlement Subsidy Could Cost Taxpayers $3 Billion

hh01 — Mon, 30 Jun 2014 19:20:29 +0000

Bank Could Get Huge Tax Break in Terror-Related Justice Dept. Settlement
As the Justice Department approaches a multi-billion-dollar settlement with the bank BNP Paribas over allegedly hiding information linking transactions to terrorist regimes, there may be billions at stake for taxpayers. Unless the Justice Department explicitly forbids it, BNP Paribas may be able to write off its settlement, forcing U.S. taxpayers to bear costs that could exceed $3 billion.
In fact, as BNP Paribas and French authorities lobby the White House and federal agencies to reduce the settlement amount, the tax deductibility of the settlement may become a key bargaining chip.
“Unlike some agencies, the Justice Department does not always disclose the terms of its settlements, leaving the after-tax value of the settlement a secret. The Department of Justice should forbid deductibility and publish the terms of its deal so the public can judge whether the agency is truly holding BNP Paribas accountable,” said Phineas Baxandall, Senior Analyst at the U.S. Public Interest Research Group. “If BNP truly did aid terrorists as the Justice Department alleges, they certainly shouldn’t get a tax break for it.”
The French banking giant reportedly intentionally hid information to help clients evade U.S. sanctions placed on Iran and Sudan for the sponsorship of terrorist groups. The bank is being investigated for charges that it removed identifying information from $30 billion dollars in wire transfers that would have otherwise alerted authorities that American economic sanctions were violated.
Based on the 35 percent federal tax rate on corporate profits and the $9 billion settlement amount discussed in recent reports, the French bank could shift $3.15 billion back onto taxpayers without the maneuver ever becoming public.
Whether or not a settlement is tax-deductible does not depend on whether there is a guilty plea. Unless a settlement spells out otherwise, companies that acknowledge fault can still deduct amounts they deem to be normal business restitution or compensation.
“Will the Justice Department forbid tax deductibility, as it did with the $2.6 billion Credit Suisse settlement last month,” asked Baxandall. “Or will the agency forbid tax deductibility on only a fraction of the settlement, as it did with $2 billion of the $13 billion JPMorgan settlement last November? Or will the Justice Department allow the bank to use the whole settlement as a tax write off, as it has in several other cases? The real value of the final deal may depend a lot on tax deductibility.”
It is also possible that the Justice Department will avoid discussion of the issue by not disclosing the tax deductibility of the settlement. When the Justice Department announced a $1.9 billion settlement at the end of 2012 with the bank HSBC for money laundering for known terror groups and Mexican drug cartels, for instance, the agency never disclosed the terms of the deal or whether it forbid the bank from taking a tax deduction. A deduction for that settlement could have been worth $700 million at taxpayer expense.
The Justice Department hasn’t explained its policies for allowing some companies to treat settlement payments like an ordinary cost of doing business or why it often does not disclose the terms of settlements.
“When ordinary Americans break the rules, we don’t have the option of deducting our parking tickets or library fines,” said Baxandall. “Just because big banks have teams of lawyers negotiating for them shouldn’t leave taxpayers picking up the tab for their misdeeds.”
In discussion of the BNP Paribas case last week, the New York Times Deal Book column criticized that the way the Justice Department “metes out corporate justice is so toothless, arbitrary and opaque. …The randomness and lack of transparency are not fair.”
Bipartisan bills in both the U.S. House and Senate, The Truth in Settlements Act (S. 1898 – fact sheet) would require agencies to report the expected after-tax value of settlements if they are allowed as tax deductions. The bills would also require agencies to post online a variety of details about settlements to make their true value apparent to the public. The bills are cosponsored by Sens. Warren and Coburn in the Senate, and Representatives Cole and Cartwright in the House.
Another bipartisan bill in the Senate (S. 1654) cosponsored by Senators Harry Reed (RI-D) and Chuck Grassley (IA-R) would restrict tax deductibility for settlements and require agencies to spell out the intended tax status of settlements. A similar bill in the House sponsored by Representative Peter Welch (VT-D) would also forbid such deductions.
A poll released this spring by the U.S. Public Interest Research Group Education Fund and conducted by Lake Research Partners found that substantial majorities across party lines overwhelmingly disapprove of settlement tax write offs and want federal agencies to be more transparent about them.
You can read U.S. PIRG’s research report on the tax implications of legal settlements, “Subsidizing Bad Behavior: How Corporate Legal Settlements for Harming the Public Become Lucrative Tax Write-Offs.

VENDTEK SYSTEMS ANNOUNCES FISCAL Q1 2014 FINANCIAL RESULTS

hh01 — Thu, 03 Apr 2014 20:35:59 +0000

VANCOUVER – Apr 1, 2014 – VendTek Systems Inc. (VSI – TSX Venture) (the “Company”), a developer and licensor of software for the global prepaid telecom and financial services markets, today reported its financial results for its first quarter of fiscal 2014 ended January 31, 2014 (“Q1 FY2014”).

Selected Financial Information (2)

Revenue for the quarter ended January 31, 2014 increased $776,000 to $1.3 million, or 142% from $547,000 in the prior fiscal quarter of FY2013;
Gross profit for Q1 FY2014 increased to $892,000 million compared to $432,000 in the prior fiscal quarter, with gross margin decreasing to 67.4% from 84.1%, respectively;
Operating expenses were $1.6 million compared to $1.5 million in the prior fiscal quarter;
Adjusted EBITDA1 loss was $653,000 for Q1 FY2014 compared to a loss of $958,000 for the prior fiscal quarter;
Net income (loss) was $4.1 million compared to ($901,000) in the prior fiscal quarter;
Cash used in operations was $927,000 for Q1 FY2014, compared to $187,000 in the prior fiscal quarter;
Cash and cash equivalents was $1.7 million at January 31, 2014 compared to $2.7 million in at October 31, 2013, which excludes $3.9 million cash received by the Company on February 3, 2014 in connection with its Canadian operations divestiture, and $1.6 million in convertible debentures repaid on February 6, 2014;
Resolution of $3.0 million of convertible debentures that matured on January 25, 2014.

(2) Reflects restated financial information of the Company’s continuing operations following the divestiture of its Canadian assets, effective January 31, 2014.

“The first quarter of fiscal 2014 represents an important chapter in the life of the Company, commented Doug Buchanan, President and CEO of VendTek. It.is the quarter marking the closing of our Canadian asset divestiture, the discontinuation of our US operations, and the beginning of our new emphasis on Brazil and other international operations. In particular, VendTek’s Brazil operations will become a more material portion of our business and our reporting will necessary reflect this greater transparency“, added Mr. Buchanan.

Subsequent to quarter-end, the Company announced the closing of its Canadian operations divestiture to Payment Source Inc. (“PSI“) for $6.0 million (the “Purchase Price“) effective January 31, 2014 (the “Closing Date“), which consists of $4.5 million of cash consideration and the assumption of up to $1.5 million of trade payables. The $4.5 million of cash consideration consists of a $200,000 deposit, which was paid on November 15, 2013, $3.9 million which was paid on February 3, 2014 and a $450,000 holdback (“Holdback“) which is due ninety days from the Closing Date, subject to working capital adjustments. The Company’s preliminary analysis suggests it will not be receiving this Holdback payment based on its working capital position on the Closing Date.

In connection with the PSI transaction, the Company will also receive a minimum of two-years of license fee payments for its efreshTM software and transition service fees for a six-month period. The Company intends to use the proceeds from this sale to support and grow its ongoing operations in Brazil which the Company believes holds tremendous potential. This transaction will allow VendTek to refocus its resources on this exciting growth opportunity while simplifying its overall operating structure.

On October 31, 2013 the Company announced the cancellation of $750,000 in convertible debentures to one of its holders in connection with the 6.0% $3.05 million unsecured convertible debenture offering that was issued in 2011 and matured on January 25, 2014, leaving $2.3 million. This cancellation was in partial consideration for the renegotiation of the Company’s territory agreement with a related party. On February 6, 2014, the Company repaid $1.6 million of the remaining $2.3 million in principal payments that matured on January 25, 2014 to its convertible debenture holders. The $672,000 balance in convertible debentures was cancelled and reissued as either new convertible debentures bearing interest of 7.5% per annum with attached warrants or 9.0% per annum without warrants.

Subsequent to quarter-end the Company announced an agreement between its Brazil subsidiary, Now Prepay Servicos de Informatica Ltda. (“NPS”), and GetNet, which specializes in the development and management of electronic payment solutions and services for businesses using electronic transactions. GetNet is present in over 400,000 retailers throughout Brazil and Chile. Under the agreement, NPS will have exclusive regional rights to distribute its full product portfolio to merchants who are using the GetNet debit/credit processing solution. By utilizing GetNet’s hardware infrastructure to deliver the Company’s products to the GetNet merchant network, NPS will also be able to significantly reduce the capital equipment cost required to build-out its network. Once fully implemented, the Company expects this agreement to have a significant impact on NPS’s growth prospects in Brazil.

Also subsequent to quarter-end, the Company announced that its wholly owned Brazilian subsidiary, NPS, launched a new product in partnership with Vivo SA, called “Vivo Insurance”. Vivo SA is an operator of mobile telephony, fixed telephony, broadband Internet and cable TV and is owned by Telefonica. Of the four major carriers, Vivo SA has the largest market share in Brazil. Vivo Insurance is a new product targeting Vivo’s 77 million mobile customers. Users who buy mobile pre-paid credit will be able to add a health insurance feature to their purchases. The insurance feature is sold as a “package” bundled with mobile pre-paid credits and also enables participation in the Federal lottery. According to a 2011 report commissioned by the Brazilian Insurance Industry Association, there were in excess of 40 million people without any insurance in Brazil in 2009. The target market for micro-insurance was estimated to be 128 million people at that time.

With approximately 2,700 transacting point-of-sale locations as of January 31, 2014, the Company is targeting an additional 4,000 by December 31,2014. Vendtek’s long-term strategy is to develop and maintain high margin licensing relationships of its e-Fresh™ transaction processing software with its international operating partners across the many markets where the demand for the Company’s prepaid transaction processing services is significant.

VendTek’s MD&A and complete financial statements and notes are available at www.sedar.com and the Company’s website www.vendteksystems.com.

For more information or to receive the complete statements please contact Samantha White at 604-805-4653 or 1-800-806-4958 or investment@vendteksystems.com.

Conference Call
To access the conference call by telephone, dial 1-416-764-8688 or 1-888-390-0546 and reference the company name, VendTek Systems Inc. or this conference ID 05607738.

A live audio webcast of the conference call will be available at http://www.newswire.ca/en/webcast/detail/1328411/1467887. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast.

1 Management defines Adjusted EBITDA as net income adjusted for financing, taxes, depreciation, amortization expenses, discontinued operations, impairment of non-financial assets, foreign exchange differences and stock based compensation expense. Please see the attached schedule and the Management Discussion and Analysis for more details.

BNDES and official banks of BRICS sign agreement to finance companies in local currency

hh01 — Sat, 31 Mar 2012 13:07:23 +0000

The president of BNDES (Brazilian Development Bank), Luciano Coutinho, and the presidents of the development banks of China, Russia, India and South Africa, countries that together form the block known as BRICS, signed two agreements that open a way for the intensification of economic relations between the emerging potencies.

The umbrella agreement (Master Agreement) defines the mechanisms for the five signatory institutions to negotiate loans in local currency. The goal is to expand financial cooperation and the expansion of trading and investment between the countries. But the Letter of Credit Agreement determines the conditions for the adoption of mechanisms that allow the confirmation of letters of credit for export operations. The development banks pledge to discuss, case by case, bilateral instruments for the concession of a letter of credit.

The agreements are valid for five years. The signing took place during the Fourth Meeting of the BRICS Leaders, in New Delhi, India.

CIT and Dell launch two preferred partnership financing programs in Brazil and Mexico

hh01 — Thu, 02 Jun 2011 11:49:48 +0000

CIT Group Inc, a leading provider of financing to small businesses and middle market companies, and Dell Tuesday announced the launch of two preferred partnership financing programs in Brazil and Mexico. The programs will provide financing to large enterprise customers looking to acquire Dell solutions.

Ron Arrington, Global President, CIT Vendor Finance, reiterated his delight to launch these programs with Dell in two of the most dynamic growth markets in Latin America. CIT’s expertise in financing, in-depth knowledge of the local markets and integration with Dell’s go-to-market strategy will provide commercial customers with attractive financing alternatives for Dell products, said Arrington.

Rick Stipe, Executive Director at Dell Financial Services, said Dell’s decision to launch these programs with CIT is reflective of the company’s long-standing relationship and history of success. These programs will address the needs of its commercial customers by providing a comprehensive technology solution that allows them to make payments over time, said Stipe.

CIT Vendor Finance is a global leader in providing business solutions for manufacturers, distributors and product resellers and financial solutions for their customers. CIT maintains relationships and develops financing programs with leading manufacturing companies that can enable increased sales while providing equipment financing and value added services from invoicing to asset disposition to small and middle market businesses across all industries that facilitate the purchase of equipment according to their needs.

CIT is a bank holding company with more than $35 billion in finance and leasing assets. It provides financing and leasing capital to its more than one million small business and middle market clients and their customers across more than 30 industries. CIT maintains leadership positions in small business and middle market lending, factoring, retail finance, aerospace, equipment and rail leasing, and global vendor finance.

Vendor financing programs are developed for manufacturers, product resellers and distributors to enable their customers to acquire product now and finance payments over time. CIT Vendor Finance partners with manufacturers and product resellers primarily in the technology, telecommunications and office equipment industries to provide lending and leasing solutions tailored to their specific markets and individual business strategies.

CIT’s Corporate Finance provides lending, leasing and other financial and advisory services to the small business and middle market sectors, with a focus on specific industries, including Communications, Energy, Entertainment, Healthcare, Industrials, Information Services & Technology, Restaurants, Retail, Sports and Gaming.

Travelex enters Brazilian market with acquisition of Grupo Confidence

hh01 — Mon, 30 May 2011 13:38:53 +0000

Travelex, the world’s leading foreign exchange specialist, Friday announced its entry into the Brazilian market through the acquisition of Grupo Confidence (Confidence), Brazil’s largest independent foreign exchange business. The transaction is consistent with Travelex’s growth strategy, which is focused on expanding in fast growing regions and emerging markets.

Under the terms of the agreement, Travelex will acquire an initial 49% shareholding in Confidence following Brazilian Central Bank and Presidential approval, with the remaining 51% to be acquired by no later than 2014. Travelex will finance the acquisition from internal resources.

Peter Jackson, Chief Executive of Travelex, said the deal represents a unique opportunity for both Travelex and Confidence. Combining the company’s internationally recognized brand with the established local track record of Confidence will enable Travelex to accelerate its ambitious growth plans, said Jackson.

Founded in 1997, Confidence has grown to become Brazil’s largest independent foreign exchange business, operating a network of around 115 stores across Brazil and employing more than 700 people.

Currently, the company has 101 stores in shopping malls located across Brazil’s major cities and 14 airport stores covering all major airports including Guarulhos, Sao Paulo’s international airport. It is expected that these stores will be rebranded as Travelex over time.

In addition, Confidence has also recently established a foreign exchange bank operation following receipt of a banking license in May 2010, the first such Brazilian foreign exchange business to be granted such a license.

Under the leadership of Marcus Schalldach, Founder and Chief Executive, Confidence has grown strongly, doubling the number of stores over the past two years. In 2010, the company reported revenues of £36.4 million and profit before tax of £6.3 million.

Marcus will continue in his role as Chief Executive of Confidence, providing continuity of management and working in partnership with Travelex to continue the expansion of the business in Brazil.

Brazil is a fast growing BRIC nation, with the economy growing at approximately 7.5% in 2010 and forecast to continue growing at a rate of more than 4% per annum until 2016. The Brazilian retail foreign exchange market is currently worth approximately $17 billion and is expected to continue growing.

Its growth will be supported by Brazil’s strong economic growth and rising passenger numbers. Events such as the 2014 World Cup and the 2016 Olympic Games are also likely to provide a boost to the inbound passenger foreign exchange market. Confidence is ideally positioned to benefit from this growth.

Cielo acquires leading company in payment processing for e-commerce in Brazil, Braspag

hh01 — Mon, 30 May 2011 04:15:12 +0000

Cielo S.A., the leading merchant acquirer and payment processor in Brazil, announced that it has acquired 100 per cent of the capital stock of Brazil’s leading company in payment processing for e-commerce, Braspag – Tecnologia em Pagamento Ltda. (Braspag). The acquisition was undertaken via a subsidiary of Cielo S.A.

Founded in 2005, Braspag is known for innovation and the development of online payment solutions and is the leading company in payment processing for e-commerce in Brazil, with a market share of approximately 65% in its segment. Operating as a gateway, Braspag‘s platform integrates online stores, financial institutions and acquirers, and is responsible for capturing, routing and managing payment transactions with cards, collection slips and online debit.

In addition, Braspag consolidates the accounts receivable process of Brazil‘s leading online stores, offering the most comprehensive range of services in the segment of online transaction processing.

This acquisition strengthens Cielo’s leadership in the online payment segment in Brazil through a significant presence in yet another link of the e-commerce value chain. This presence guarantees a unique position for stimulating and capturing the strong growth in this market.

Cielo will also expand its product portfolio with a more comprehensive offering that, in addition to including other payment methods such as collection slips and online debit, provides value-added services like financial reconciliation and anti-fraud intelligence tools, further strengthening the relationship with its clients.

Both companies will remain committed to meeting the needs of their clients, maintaining the current relationship models. Braspag will continue to provide services to clients that choose to use other acquirers, while, for its part, Cielo will continue to work in partnership with other gateways in the market to serve clients who choose other solutions.

Cielo S.A is the leading company in the merchant acquiring and payment processing industry in Brazil, with a 49% market share in terms of credit and debit card transaction volume. The total credit and debit card transaction volume amounted to R$541.9 billion in 2009, according to the ABECS.

Cielo has the largest domestic coverage in the Brazilian merchant acquiring and payment processing industry, with approximately 1.2 million active merchants, according to the joint report prepared by the Payment Card Industry. It is also present in more than 98.9% of Brazilian municipalities.

According to Cielo, as of July 1, 2010, the card industry, specifically the acquiring segment, has entered a new competitive landscape. A multi-brand scenario was installed and acquirers began capturing and processing multiple card brands.

Cayman Islands based Equity Partners Fund SPC unveils new segregated portfolio to invest in Brazil

hh01 — Mon, 16 May 2011 12:44:31 +0000

Cayman Islands based Equity Partners Fund SPC has established a new segregated portfolio which will conduct business under the name Funchal Equity Partners Fund to make investments into Brazil.

Banif Banco de Investimento (Brazil) S.A. has been engaged to conduct valuations of potential transactions and to assist in the hiring of companies that can conduct due diligence should it be required.

Funchal Equity Partners Fund generally looks to invest amounts from $50 million up to $500 million in Brazilian listed companies with consistent trading volumes for a variety of activities including working capital, acquisitions and other growth opportunities.

Alex Chaia, Fund spokesperson said the fund focuses on equity investments in public companies as well as private companies that will be listed on a securities exchange within six months of a funding commitment.

Unlike hedge funds which have significant regulatory burdens exposing their investors to higher risks, Funchal Partners Fund is able to act quickly, is more flexible when it comes to structuring an investment and has less regulatory burdens, Mr. Chaia said.

According to Chaia, the fund has no outside investors and is considered a private fund run by its principals, similar to a merchant bank that invests its own capital and as such it is seeking capital appreciation through the identification and funding of liquid growth companies.

The fund will approach various companies such as manufacturing, construction, professional services, healthcare and finance who are all looking for growth or acquisition funding which is difficult to find given current global economic conditions, Chaia said.

The fund’s investment guidelines, apart from a company’s size and liquidity, require them to have exceptional management and long-term sustainable growth opportunities with the potential to achieve significant milestones over a developmental period, noted Chaia.

Chaia reiterated that while applicants should expect to be able to meet the company’s due diligence requirements, the funding arrangements are much simpler than many other avenues such as rights issues and other underwritten issues.

Ultimately once a company satisfies the fund’s requirements, the company will send proposed investment terms and explain the steps required for the company to ultimately obtain the requested funding, he added.

Equity Partners Fund SPC provides fast, efficient and inexpensive access to equity capital. The company has commitments for funding on many exchanges including Frankfurt, Johannesburg and Sydney.

Mosaico acquires 40 per cent of Brazil’s ClickOn with closure of round of financing

hh01 — Fri, 06 May 2011 04:19:17 +0000

ClickOn, one of the leading group buying sites in Brazil, closed a round of financing with Mosaico, an Organizacoes Globo company focused on investing in Internet businesses. With the deal, Mosaico now acquires 40% of ClickOn. The group-buying market in Brazil should exceed US$ 700 million in sales in 2011 and continues to be the fastest growing business model in the Brazilian Internet landscape, said ClickOn.

Guilherme Pacheco, CEO at Mosaico, noted that the group-buying model changed the way consumers interact with local services around the world. Pacheco reiterated that this new business model has attracted new consumers and companies to do business online, changing the landscape and growth possibilities for e-commerce in the region.

According to Pacheco, the entrepreneurs at ClickOn did an incredible job building one of the biggest Brazilian group-buying sites and standing out amidst thousands of companies that entered this market. Pacheco said the team executed the model brilliantly highlighting high-quality offers, great attention to the consumer and a sustainable relationship with their partners.

ClickOn, which celebrates one year of operations this May, is the fourth investment by Mosaico, which has already invested in the travel site Mundi, the game developer Gazeus and the price comparison site Zoom, which will be officially launched in the second semester.

Mosaico will leverage the synergies with the other Mosaico companies and the largest media group in Brazil, Organizacoes Globo. These partnerships will give ClickOn strong competitive advantages increasing traffic and sales, stated Pacheco.

Marcelo Macedo, CEO at ClickOn, said Mosaico joins ClickOn as it marks its first birthday with more than 7 million users, 5 thousand plus offers and more than 1.5 million coupons sold. The new investment will help accelerate ClickOn’s aggressive expansion plans, said Macedo.

With Mosaico’s support and their vast experience in the Internet space, ClickOn will aim for a national leadership position, said Macedo.

ClickOn is one of the leading group-buying sites in Brazil offering daily deals in more than 42 cities with up to 90% discount. The offers vary in nature including several business segments such as wellness, food and beverage, tourism, entertainment, etc. The company was launched in May 2010 and currently has a team of more than 300 employees.

Mosaico is a Brazilian multi-stage investment firm providing capital and strategic support for internet companies from early to late stage.

3i launches expansion move into Brazil with new team and office

hh01 — Wed, 20 Apr 2011 03:54:21 +0000

3i Group plc, an international investor focused on Private Equity, Infrastructure and Debt Management, has appointed Marcelo Di Lorenzo, previously of Standard Bank Private Equity, to head its newly-established office and team in Brazil.

Marcelo will head a team which has an established track record over the last 15 years, having worked on private equity transactions across Latin America. 3i will co-manage Standard Bank’s existing investment in Casa do Pão de Queijo.

Marcelo Di Lorenzo, now head of 3i Brazil said that the mid-market represents a great opportunity in the Brazilian private equity market and 3i is well positioned to take advantage of this given its long track record investing in mid-size companies, its extensive network, its strong reputation and its deep sector knowledge. Lorenzo said 3i Brazil is confident it will also add substantial value to future portfolio companies in Brazil.

3i Brazil will add to the Group’s existing private equity business and support its market entry into Latin America. Approx. 20% of 3i’s core portfolio companies generate revenues from Latin America, so the team will also enhance the Group’s ability to provide these companies with on the ground support as well as enable other portfolio companies to access the opportunities that the region presents.

In addition to Marcelo, the team will initially consist of three other former Standard Bank Private Equity professionals, Edward Hanmer, Felipe Vivacqua and Carlos Lopes, all based in São Paulo. 3i will look to invest between $30 million and $100 million per transaction in businesses with an enterprise value of up to $200 million for minority or majority shareholdings.

The main focus will be on businesses in the consumer and business services sectors.

Bob Stefanowski, head of 3i’s American and Asian business, said that he believes the team, led by Marcelo, will be a great addition to the Group. According to Stefanowski, the formation of 3i Brazil will enhance the firm’s global investment capabilities and will provide its portfolio companies, many of which are already active across Latin America, with further access to this growing region.

3i is an international investor focused on Private Equity, Infrastructure and Debt Management, investing in Europe, Asia and the Americas. 3i’s competitive advantage comes from its international network and the strength and breadth of its business relationships. These underpin the value that the firm delivers to its portfolio, shareholders and fund investors.