Citi announced it has agreed to acquire Intra S. A. Corretora de Cmbio e Valores, a top 10 independent brokerage firm in Brazil. The purchase will expand Citi’s capabilities in Brazil by adding a leading retail brokerage to the company’s consumer banking and institutional equities business in the country. This transaction is subject to approval by regulators in Brazil and the U.S. Financial terms of the transaction were not disclosed.
The acquisition of Intra positions Citi as a leading personal financial services provider in Brazil and is consistent with the company’s strategy to invest and expand in core emerging markets. The addition of Intra’s staff, customers and technology will contribute to the development and growth of Citi’s consumer and institutional equities business in the country. Specifically, Intra’s branches, retail brokers and online trading platform will complement Citi’s full-service consumer offering.
“This acquisition will benefit Citi and Intra clients by combining Citi’s existing banking and advisory services with Intra’s high-quality brokerage network and online trading technology. Customers will further benefit from access to new equity issues underwritten by Citi in Brazil. This transaction underscores Citi’s commitment to providing a full range of financial services and growing our business in Brazil. The purchase comes amid rapid expansion of Brazil’s capital markets and increased appetite for financial activities by individuals,” says Gustavo Marin, CEO, Citi Brazil.
In Intra, Citi is acquiring an award-winning company with approximately R$1.2 billion ($745 million) in client assets and more than 15,000 active client accounts. Intra was recognised as one of the Intra “2007 Top Companies” and has received the “Web Broker,” “Retail Broker” and “Agro Broker” seals by BM&F – Bolsa de Mercadorias e Futuros.
“This acquisition is positive for Intra, for Citi and for clients of both institutions. The most important message for Intra clients is that they will continue to receive the service they are used to from Intra while gaining access to a full range of services offered by Citi,” says Ezra Safra, managing partner, Intra.
Citi has more than 120 consumer banking branches in Brazil, more than 400,000 client accounts and some 7,000 employees. Citi has a presence in 10 Brazilian states: So Paulo, Rio de Janeiro, Rio Grande do Sul, Paran, Minas Gerais, Pernambuco, Bahia, Distrito Federal, Gois and, now, Santa Catarina. CitiFinancial, the consumer finance business, has 130 locations in 20 states across Brazil.