TOTVS has ventured into the e-commerce realm. The Brazilian tech and software giant has announced a deal to acquire a majority stake in Ciashop, a leading developer of online retail solutions. TOTVS will pay R$19.4 million (around US$8.18 million) for up to 72% of the company.
The transaction includes the purchase 50% of company shares held by Ideiasnet (which invested in 2011) and 18.5% of those held by directors. TOTVS also plans to invest R$3 million (US$1.26 million) in Ciashop next year, thus reaching the 72% mark. The rest of the shares will remain with the company’s board of directors.
With 13 years in the business, Ciashop is a pioneer in Brazil’s e-commerce market. Its cloud-based platform and SaaS model are based on open architecture and highly scalable technologies. The company employs over 70 professionals and boasts more than 1,000 active online stores.
With this deal, TOTVS and Ciashop hope to take full advantage of the fast-growing e-commerce market in Brazil and Latin America. As mentioned, this marks the first time TOTVS has ventured into the e-commerce realm. It is part of the company’s strategy to become increasingly essential for clients and increase its portfolio of retail solutions.
“With the inclusion of the Ciashop e-commerce platform into the TOTVS portfolio, we are able to offer our clients of different sizes and industries a powerful solution for online sales,” commented Alexandre Dinkelmann, Executive VP of Strategy and Finance at TOTVS, in the deal announcement.
The Ciashop platform is already commercialized through 70 different sales channels and will now be distributed through TOTVS and its partners as well.
TOTVS is one of Brazil’s most active players in tech acquisitions and investments. In July, it acquired RMS Software and Webstrategie Software as part of a deal worth US$16.7 (R$37.4 million) – a move to strengthen its position in supermarkets and retail. Its investment arm, TOTVS Ventures, has invested in Brazilian companies ZeroPaper and uMov.me as well as the U.S.-based GoodData. And it also launched a startup contest, TOTVS Start it up, in April of this year. Rio de Janeiro-based Intelie nabbed the top spot and a R$1.7 million (US$740,000) prize in September.