B3's acquisition of Neoway is a positive diversification move – Bank of America

B3 SA - Brasil Bolsa Balcão's acquisition of Neoway Tecnologia Integrada Assessoria e Negócios SA is a "positive business diversification move," analysts from Bank of America wrote in an Oct. 20 report.

The investment bank said the purchase is "in line with B3's strategy" of diversifying revenues. The Brazilian stock market operator has been looking for ways to open up new revenue streams. According to Bank of America, big data analytics company Neoway serves 700 clients in the region with a 4% market share of a 4 billion Brazilian reais market.

On Oct. 19, B3 CEO Gilson Finkelsztain discussed the acquisition of Neoway in a call with financial analysts. "This acquisition is part of our strategy to accelerate innovation and growth in areas complementary to our core businesses," he said. "Data and analytics products are [a] growing source of revenue for stock exchanges around the world."

B3 will pay 1.8 billion reais for the acquisition, a disbursement that is likely to have a "limited impact" on B3's cash position, according to Bank of America.

The closing of the transaction is still subject to approval from the Brazilian financial market regulator and the country's antitrust agency, CADE.

As of Oct. 20, US$1 was equivalent to 5.55 Brazilian reais.