Wiz Soluções e Corretagem de Seguros SA has struck an agreement to acquire a majority stake in Barigui Corretora de Seguros Ltda., a Brazilian insurance broker tied to an automobile dealership network.

Under the terms of the deal, Wiz Soluções will pay up to 7 million reais in cash for a 76% stake in Barigui Corretora upon closing of the deal. It also will pay a second installment in May 2021 based on the fulfillment of certain performance targets.

Wiz Soluções said the deal was part of its new diversification strategy, which it launched amid uncertainty regarding the future of its major partnership with Caixa Econômica Federal.

Barigui Corretora is part of Grupo Barigui, one of Brazil's largest multi-brand vehicle distribution groups and the largest used car seller in southern Brazil. As part of the agreement, Wiz Soluções will grant Barigui Corretora a 10-year exclusivity period to offer and distribute insurance and other products throughout the broader Barigui group's distribution network.

Wiz Soluções also will have the right to choose appointments for two of Barigui Corretora's three board seats and one of its two officer positions.

As of Dec. 18, US$1 was equivalent to about 4.06 Brazilian reais.