Brazil's Totvs to fund $156 mln Bematech purchase with cash
SAO PAULO Aug 17 (Reuters) - Totvs SA, the largest Latin American producer of enterprise software, will tap its cash holdings to pay for the 556 million real ($156 million) acquisition of Bematech SA, executives said on a conference call on Monday.
The companies are still calculating the amount of potential cost savings that will stem from the combination, said Rodrigo Kede, Totvs' chairman, on the call. Under terms of the deal, Totvs will pay a premium of 54 percent over Bematech's closing price on Thursday and the equivalent of 7.2 times Bematech's estimated operational earnings this year, according to Thomson Reuters calculations. (Reporting by Guillermo Parra-Bernal; Editing by Jeffrey Benkoe)
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