PicPay too Acquire Kovr Seguradora Following Management Buyout
Brazilian digital bank PicPay is set to acquire Kovr Seguradora, a move that follows a recent management buyout (MBO) from investor Vorcaro. The acquisition aims to expand PicPay’s offerings into the insurance, capitalization, and open pension segments, complementing its existing customer base.
Kovr was initially sold by Vorcaro shortly before the liquidation of Banco Master,through an MBO led by CEO Thiago Leão de Moura,Vice-President of Operations Eduardo Viegas,and Commercial Director Renato Rennó. However, the deal was structured with the understanding that PicPay would ultimately acquire 100% of the insurance company. This expectation was widely anticipated in the market, given PicPay’s existing distribution of Kovr’s products.
According to a report by Folha de S.Paulo, PicPay requested the Brazilian antitrust regulator, Cade, to waive the requirement of disclosing data about the sellers and thier economic group, arguing it was not relevant to the competitive analysis of the acquisition. PicPay stated through its press office that such waivers are standard practice in 100% capital acquisitions and do not pose a competitive concern.
The acquisition also includes Estrutural, an insurance brokerage whose owners are family members of kovr’s management team.
Kovr was excluded from the sale of Banco Master to BRB (Banco de Brasília) in March of the previous year, alongside Banco Voiter and Banco Master de Investimentos. This earlier exclusion signaled the separate path being prepared for Kovr’s eventual sale to PicPay.
Sources: