Inter&Co doubles down on SMEs through acquisition of Granito

Rhea-AI Summary

Inter&Co (NASDAQ: INTR | B3: INBR32) announced that Banco Inter S.A. signed an agreement to acquire the remaining 50% of Granito, a merchant acquirer serving over 100,000 SMEs in Brazil. This $110 million BRL transaction aims to enhance Inter's financial super app and strengthen its position in the Brazilian market. The acquisition, pending approval from the Central Bank of Brazil and CADE, is expected to create operational synergies and facilitate cross-selling opportunities. Granito will be renamed Inter Pag, aligning with Inter's strategy to offer comprehensive digital financial solutions.

Positive

• Acquisition of remaining 50% of Granito for $110 million BRL.
• Granito serves over 100,000 SMEs, enhancing Inter's market reach.
• Potential for operational synergies and cross-selling.
• Strengthens Inter's position in the Brazilian market.
• Granito to be renamed Inter Pag, aligning with digital platform strategy.
• Enhances Inter's financial super app with comprehensive solutions.

Negative

• Transaction subject to approval by Central Bank of Brazil and CADE.
• Possible delays in regulatory approval.

BELO HORIZONTE, Brazil, May 28, 2024 (GLOBE NEWSWIRE) -- Inter&Co Inc. (NASDAQ: INTR | B3: INBR32), announces that Banco Inter S.A. entered into a share purchase agreement to acquire the remaining 50 percent of Granito, a merchant acquirer that provides financial services to more than 100,000 SMEs across Brazil. This transaction will bolster Inter's portfolio, generate operational synergies, and facilitate cross-selling opportunities within its robust financial super app.

The transaction strengthens Inter's position as a preferred partner for entrepreneurs and businesses in Latin America's largest economy. Leveraging Granito's extensive SME offerings, Inter reinforces its value proposition as an end-to-end digital platform, further enhancing its ecosystem.

“By fully owning Granito, we will further enhance our value proposition to our customers, making our financial super app a full suite of solutions to business owners and entrepreneurs. It also further expands our footprint in the Brazilian market” said Joao Vitor Menin, CEO of Inter&Co. “This is another step to continue disrupting the financial services industry by creating convenience, driving operational excellence, and delivering value to our shareholders as outlined in our 60-30-30 plan.”

Banco Inter S.A., a fully owned subsidiary of Inter&Co, previously owned 50 percent of Granito, which will be renamed to Inter Pag. The purchase of the residual 50% of capital stock from Banco BMG S.A. was agreed for $110 million BRL.

Inter&Co will inform its shareholders and the market about the completion of the transaction, which is subject to approval by the Central Bank of Brazil and the Administrative Council for Economic Defense of Brazil (CADE), and the fulfillment or, otherwise, waiver of other conditions precedent by Banco Inter S.A. and Banco BMG S.A., as applicable.

Additional information may be obtained from Inter&Co's Investor Relations Department at ir@inter.co, or on Inter&Co’s website, hkp://investors.inter.co.

About Inter&Co
Inter&Co (NASDAQ: INTR), the company that controls Banco Inter in Brazil and the subsidiary Inter&Co Payments, is the pioneering financial super app serving over 32 million customers across the Americas. The Inter ecosystem offers a broad array of services, including banking, investments, mortgages, credit, insurance, and cross-border payments. The financial super app also boasts a dynamic marketplace, linking consumers with shopping discounts, cashback rewards, and exclusive access to marquee events across the globe. Focused on innovation and captivating member experiences, Inter&Co delivers comprehensive financial and lifestyle solutions to meet the evolving needs of modern consumers.

Investor Relations:
Santiago Stel
ir@inter.co

Media Relations:
Chemistry Cultura
interco@chemistryagency.com

Kaio Philipe
kaio.philipe@inter.co

FAQ

What is the significance of Inter&Co's acquisition of Granito?

Inter&Co's acquisition of the remaining 50% of Granito for $110 million BRL aims to enhance its financial super app, strengthen its market position, and create operational synergies.

How many SMEs does Granito serve?

Granito serves over 100,000 SMEs across Brazil.

What is the new name for Granito after the acquisition?

Granito will be renamed Inter Pag after the acquisition.

What approvals are needed for the Inter&Co and Granito transaction?

The transaction requires approval from the Central Bank of Brazil and CADE.

How much did Inter&Co agree to pay for the remaining 50% of Granito?

Inter&Co agreed to pay $110 million BRL for the remaining 50% of Granito.

What are the expected benefits of the acquisition for Inter&Co?

The acquisition is expected to generate operational synergies, facilitate cross-selling opportunities, and enhance Inter&Co's financial super app.