Brazilian stock exchange accelerates data-driven strategy

The acquisition of data analytics firm Neoway will see B3 progressing with a plan to diversify its product portfolio and create recurring revenue sources.

Brazilian stock exchange B3 is progressing a plan to place data analytics at the heart of its portfolio of products; a strategy accelerated with the purchase of data analytics firm Neoway.

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Founded in 2002, Neoway is one of the main big data and analytics and artificial intelligence companies in Latin America. At 1,8 billion reais ($320 million) paid in cash, the deal is B3's largest acquisition to date. The purchase is subject to the customary regulatory approvals.

B3's current offerings range from exchange trading, clearing and other post-trading services to registration of over-the-counter transactions. It also operates a listing service and acts as a central securities depository, as well as software solutions and index licensing services.

According to a statement issued by the Brazilian stock exchange, Neoway's acquisition is in line with the stock exchange's plan to develop products driven by data and analytics for the financial and capital markets, as well as credit and retail offerings.

Going forward, the idea is to offer the new services to clients in the financial services industry as well as other sectors, creating sources of recurring revenue that is independent of the stock market.

According to local reports, credit information services firm Serasa Experian was among Neoway's potential suitors and was beaten by the stock exchange. B3 has been a Neoway customer since 2014.

Neoway has a market share of about 4% and caters for a portfolio of over 500 clients with analytics tools aimed at boosting productivity and accuracy in decision-making in sales and marketing, credit, fraud prevention, compliance, and legal. The company employs 450 staff across three offices in Brazil and maintains a research center in Palo Alto, California.

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