(Adds share performance, background throughout)
By Guillermo Parra-Bernal
SAO PAULO, Jan 6 (Reuters) - Totvs SA Executive President Rodrigo Kede has quit, a securities filing said on Wednesday, indicating a slowing of the succession process at Latin America’s largest maker of business management software.
In the filing, Totvs said founder and Chief Executive Officer Laércio Cosentino would assume Kede’s position until the São Paulo-based company’s board finds a replacement.
Kede, a former International Business Machines Corp executive for about two decades, was named in June to take over as executive president before succeeding Cosentino as CEO within three years. Both executives jointly executed Totvs’ takeover of rival Bematech SA for about 556 million reais ($139 million) in August.
“Unfortunately, Rodrigo Kede recently detected a health issue, with personal and family impact, leading him to this decision,” the filing said, without elaborating.
Shares of Totvs fell as much as 2 percent after the announcement but had rebounded to trade unchanged at 30.54 reais in midmorning trading in São Paulo.
Succession at Totvs gained traction as Brazil’s worst recession in a quarter-century began to hamper the outlook for one of the country’s most dynamic service sectors in recent years. Under Cosentino, Totvs bought more than two dozen rivals to tap market segments other than business management software and regions beyond Brazil.
Analysts said Kede was helping lower the exposure of Totvs to sectors that were early adopters of technology but are now suffering because of the recession and depressed capital spending. Manufacturers and logistics companies account for about 45 percent of Totvs’ annual revenue, Banco Brasil Plural analyst Ronny Berger said in a client note last month.
$1 = 4.0351 Brazilian reais Additional reporting by Caroline Stauffer; Editing by Jason Neely and Lisa Von Ahn