UBS has entered into an agreement to acquire the Brazil-based brokerage firm Link Investimentos for a total consideration of approximately $112m.
Under the terms of the transaction, UBS has agreed to acquire 100% of the shares of Link Holding Financeira, the parent that holds all shares of the licensed operating company Link CCTVM (Link Investimentos). Its businesses will be integrated into the investment bank, wealth management and asset management divisions of UBS.
Upon closing, the combined entity in Brazil will be re-branded as UBS. However, UBS will not acquire Link’s retail online brokerage business.
Link Investimentos was founded in 1998 as an independent broker-dealer, and has offices in Sao Paulo and Curitiba. Link also provides private wealth management and asset management services. It is a private partnership with 279 staff, including 73 partners.
Carsten Kengeter, co-CEO of UBS Investment Bank, said: “Brazil represents two-thirds of the Latin American economy and is expected to be the world’s fifth largest economy by 2015. It is crucial that we have on-shore capabilities to serve our clients in globally important markets such as Brazil.”
Alex Wilmot-Sitwell, co-CEO of UBS Investment Bank, said: “The acquisition of Link Investimentos provides a platform for UBS to re-build our presence and expand our footprint in Brazil.”
Raul Esquivel, head of Latin America for UBS Investment Bank, said: “Link Investimentos is well-established and highly regarded in Brazil. We believe our clients will benefit from the addition of domestic Brazil trading capabilities, and from the new products and services we will be able to offer.”
Daniel Mendonca de Barros, CEO of Link Investimentos, said: “We are excited to join UBS to build on the successes that Link has had in Brazil and create a leading financial services organization in this important and dynamic market. I am confident that our clients will benefit greatly from the global breadth of UBS’s product offering and strength of advice and service for which UBS is known.”
The transaction is expected to close during fourth quarter 2010, subject to Central Bank of Brazil approval.