September 16, 2013
Accenture to Expand Mortgage Service Capabilities in Brazil through Acquisition of Majority Stake in Vivere Brasil, a Leading National Mortgage-Processing Technology Company
Acquisition Designed to Help Brazilian Banks Scale up Processing, Increase Efficiencies as Brazil’s Mortgage Market Expands
SAO PAULO; Sep. 16, 2013 – 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.”
Accenture is one of the leading mortgage-processing providers in the United States. By combining Vivere Brasil’s leading technology with Accenture Credit Services’ global mortgage-processing and consulting expertise, Accenture will be better positioned to help banks in Brazil increase their mortgage-processing capacity, achieve greater efficiencies, and improve their quality and risk controls.
Accenture has significantly expanded its global mortgage industry capabilities since its 2011 launch of Accenture Credit Services – a business service within Accenture’s financial services operating group that offers full-service consulting, technology and outsourcing services to large lenders – and through several strategic acquisitions. Last month, Accenture announced that it has acquired Mortgage Cadence, an advanced mortgage loan origination software provider in the U.S. market. In 2011, it acquired a leading provider of residential and commercial mortgage processing services in the U.S., formerly known as Zenta.
Accenture Credit Services supports institutions in the residential mortgage, commercial real estate, leasing and automotive finance industries. It serves more than 100 major lending institutions worldwide.
“By modernizing their technologies and tapping new processing models, lenders have an opportunity to make significant gains as the emerging markets mature and the mature markets recover,” said Terry Moore, global managing director of Accenture Credit Services. “Accenture Credit Services is expanding globally to help our clients pursue these opportunities around the world.”
Accenture’s acquisition of Vivere Brasil is subject to customary closing conditions and regulatory approvals. Financial details are not being disclosed.
Accenture is a global management consulting, technology services and outsourcing company, with approximately 266,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$27.9 billion for the fiscal year ended Aug. 31, 2012. Its home page is www.accenture.com.
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These include, without limitation, risks that: the company and Vivere Brasil will not be able to close the transaction in the time period anticipated, or at all, which is dependent on the parties’ ability to satisfy certain closing conditions; the transaction might not achieve the anticipated benefits for the company; the company’s results of operations could be adversely affected by volatile, negative or uncertain economic conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; the company’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions, and a significant reduction in such demand could materially affect the company’s results of operations; if the company is unable to keep its supply of skills and resources in balance with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; the consulting and outsourcing markets are highly competitive, and the company might not be able to compete effectively; the company’s results of operations (including its net revenues and operating income) and the value of balance-sheet items originally denominated in other currencies could be materially adversely affected by unfavorable fluctuations in foreign currency exchange rates or changes to existing currencies; the company could have liability or the company’s reputation could be damaged if the company fails to protect client and company data or information systems as obligated by law or contract or if the company’s information systems are breached; the company’s Global Delivery Network is increasingly concentrated in India and the Philippines, which may expose it to operational risks; as a result of the company’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; the company’s results of operations could materially suffer if the company is not able to obtain sufficient pricing to enable it to meet its profitability expectations; 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the company has only a limited ability to protect its intellectual property rights, which are important to the company’s success; the company’s ability to attract and retain business and employees may depend on its reputation in the marketplace; the company’s alliance relationships may not be successful or may change, which could adversely affect the company’s results of operations; the company may not be successful at identifying, acquiring or integrating other businesses; the company’s profitability could suffer if its cost-management strategies are unsuccessful, and the company may not be able to improve its profitability through improvements to cost-management to the degree it has done in the past; many of the company’s contracts include performance payments that link some of its fees to the attainment of performance or business targets and/or require the company to meet specific service levels, which could increase the variability of the company’s revenues and impact its margins; changes in the company’s level of taxes, and audits, investigations and tax proceedings, or changes in the company’s treatment as an Irish company, could have a material adverse effect on the company’s results of operations and financial condition; if the company is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; if the company is unable to collect its receivables or unbilled services, the company’s results of operations, financial condition and cash flows could be adversely affected; the company’s share price and results of operations could fluctuate and be difficult to predict; the company’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; the company may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. 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