Accenture (NYSE:ACN) has agreed to acquire a majority stake in Vivere Brasil Serviços e Soluções S.A. (Vivere Brasil), a leading mortgage-processing technology company, partly owned by BTG Pactual. The acquisition is designed to expand Accenture’s mortgage-processing technology and services capabilities to help Brazilian banks increase their efficiencies and capacity for processing loans in the country’s rapidly expanding mortgage market.
Upon closing of the acquisition, Accenture will hold majority ownership and have management responsibility for Vivere Brasil. Vivere Brasil’s founders and BTG Pactual – a leading Brazilian investment bank, which acquired a stake in Vivere Brazil in October 2011 – will retain a strategic minority stake in Vivere Brasil upon closing.
Through its investment in Vivere Brasil, Accenture intends to expand its mortgage-services capabilities in Brazil, where the mortgage industry is developing rapidly. According to the most recent central bank data, mortgage loans in Brazil represent 7.4 percent of gross domestic product (GDP) – compared with 10 percent in China, 38.1 percent in Germany, 40.3 percent in Japan, 41.6 percent in France, 70.2 percent in the United Kingdom, and 81 percent in the United States. According to Brazil’s mortgage banking association, the mortgage market is expected to grow to 10 percent of GDP by 2015, and has experienced 41 percent compound annual growth since 2007.
“As demand for home loans grows, Brazil’s banks will require ever-greater mortgage-processing capacity, efficiency and quality controls in order to compete,” said Luis Simões, a managing director in Accenture’s financial services practice in Brazil. “By investing in and further developing and innovating Vivere Brasil’s industry-leading technology, and then combining it with Accenture Credit Services’ mortgage business process outsourcing capabilities, we intend to create a leading provider of mortgage processing services in Brazil.”
“Like Accenture, Vivere’s success is the result of the deep talent and industry expertise of its people,” said Marcos Burattini, president of Vivere Brasil. “By joining forces with Accenture, we gain an opportunity to expand and deliver our technology and processing skills on a much larger scale to help our clients innovate and to support the Brazilian mortgage market as it enters this new era of growth and development.”