Carolina Pulice and Peter Frontini

(Reuters] – In Brazil, software companies TOTVS and Itau Unibanco have announced that on Tuesday they will create a joint venture known as TOTVS Techfin. The company will provide financial services to medium and small-sized enterprises.

The venture will have a 50 percent stake for each company. It will be a platform that integrates “a full range of financial services,” the filings stated.

TOTVS will give all its shares in its subsidiary Supplier Administradora de Cartoes de Credito SA to the joint venture as part the agreement.

Itau will pay TOTVS as high as 860 million Brazilian Reals ($184 Million) for joint venture shares. 410 million of these reais will go to Itau in cash, and the rest will be paid 5 years later, after the attainment of the goals.

TOTVS said that this combination will help small and large-sized enterprises as well as the entire country’s production chain.

Brazil’s antitrust authority and the central bank must agree to close the transaction.

($1 = 4.6735 reais)