TOTVS announces joint venture with VTEX

Totvs announced the creation of a joint venture with VTEX, which will focus on developing and distributing e-commerce software solutions for the Brazilian market. Another announcement was the sale to VTEX of the entirety of the stake held by the Company in the share capital of CIASHOP S.A..

TOTVS reported that, by partnering with one of the leading digital commerce platforms, it will be able to offer integrated management and e-commerce software solutions.

TOTVS's Joint Venture

Under the agreement, Totvs will use its entire own and franchise structure to distribute VTEX's solutions throughout the country. There will also be integration between the solutions, allowing for a more efficient and productive user experience, making TOTVS customers more competitive.

The completion of this transaction depends on approval from Brazilian antitrust authorities and the fulfillment of other conditions customary for this type of deal. The Company will keep the market informed of any developments that prove relevant.

Read the full statement released

“TOTVS S.A. (B3: TOTS3, Brazil's stock exchange; "TOTVS"; or "Company"), pursuant to Instruction No. 358/2002 of the CVM (Brazil's securities and exchange commission) and Article 26 of the Novo Mercado Listing Regulation (B3's premium listing segment), informs its shareholders and the market in general of the execution, on this date, of an agreement ("Agreement") with VTEX S.A. ("VTEX") for (i) the creation of a joint venture that will focus on the development and distribution of e-commerce software solutions for companies in the Brazilian market; and (ii) the sale to VTEX of the entirety of the stake held by the Company in the share capital of CIASHOP S.A. ("CIASHOP"), representing 70.47% of CIASHOP's share capital, for the amount of R$21,175,000.00 (twenty-one million, one hundred seventy-five thousand reais), subject to adjustments, to be paid at the closing of the transaction.

The total value attributed to CIASHOP was R$30,048,966.08 (thirty million, forty-eight thousand, nine hundred sixty-six reais and eight cents). With this move, TOTVS will partner with one of the leading digital commerce platforms, offering integrated management and e-commerce software solutions to its more than 30,000 customers.

This is the first step in our strategy to become a business partner that helps customers improve their sales performance. We will keep advancing along the value chain, seeking to capture new revenue sources. Through the Agreement, TOTVS will use its entire own and franchise structure to distribute VTEX's solutions throughout the country.

There will also be integration between the solutions, allowing for a more efficient and productive user experience, making TOTVS customers more competitive. The completion of this transaction depends on approval from Brazilian antitrust authorities and the fulfillment of other conditions customary for this type of deal.

The Company will keep the market informed of any developments that prove relevant.”

São Paulo, May 9, 2019
Gilsomar Maia Sebastião
Investor Relations Officer