Brazil's Technology Mergers Surge to $4.2 Billion in 2024
Deal News | Jan 29, 2025 | EIN
In 2024, Brazil's technology sector saw a marked resurgence in mergers and acquisitions (M&A), reaching R$26 billion ($4.2 billion), a 115% increase from 2023. This rebound, highlighted by FZF Capital's data, follows two years of downturn in the M&A market. The number of M&A transactions rose from 145 in 2023 to 169 in 2024, though still below the 2022 peak of 267. Major transactions driving this growth included Prosus's acquisition of Grupo Despegar—valued at R$10.1 billion ($1.6 billion)—and Serasa Experian's purchase of ClearSale for R$2.1 billion ($0.3 billion), indicative of a consolidation trend in the tech sector. Investments also surged in automation and B2B software, with Asaass securing R$820 million ($0.132 billion) for SME service expansion. Despite these gains, Brazil's M&A market faces challenges with high-interest rates and economic uncertainties, though the tech sector's growth contrasts with other industry trends. The country's digital transformation and potential interest rate drops in the U.S. position Brazil as an attractive foreign investment destination.
Sectors
- Technology
- Mergers and Acquisitions
Geography
- Brazil – The article discusses M&A activity within Brazil's technology sector, emphasizing local market trends and economic impacts.
- Latin America – With Prosus's acquisition aiming to enhance its presence in the Latin American travel market, the region's broader implications on M&A are noted.
Industry
- Technology – The article focuses on the M&A activity within Brazil's technology sector, noting significant transactions and trends influencing this industry.
- Mergers and Acquisitions – The main subject is the M&A landscape in Brazil, particularly the recovery and transactions within the technology sector in 2024.
Financials
- R$26 billion ($4.2 billion) – The total value of M&A activity in Brazil's technology sector for 2024.
- R$10.1 billion ($1.6 billion) – The value of the Prosus and Grupo Despegar transaction.
- R$2.1 billion ($0.3 billion) – The value of the Serasa Experian and ClearSale transaction.
- R$178 billion ($28.7 billion) – The total value of M&A transactions across all sectors in Brazil for 2024.
- R$820 million ($0.132 billion) – The amount Asaas secured to expand its services for SMEs.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| FZF Capital | Source of Data | Company | A capital firm that provided the data and analysis on the M&A market in Brazil. |
| Prosus | Buyer | Company | Acquired Grupo Despegar to enhance its position in Latin America's travel market. |
| Grupo Despegar | Target | Company | A company acquired by Prosus in a significant deal in Brazil's M&A market. |
| Serasa Experian | Buyer | Company | Acquired ClearSale as part of a consolidation trend in the tech sector. |
| ClearSale | Target | Company | A company acquired by Serasa Experian, highlighting consolidation in Brazil's tech sector. |
| Asaas | Other | Company | Secured funding to expand services for small and medium enterprises, an example of investment driven by demand for automation. |
| Kau Pires | Contributor | Person | A representative from FZF Capital who provided insights on investment trends and valuations. |