Sinqia buys NewCon and strengthens its positioning in the software segment for the financial system

Company reinforces operations in the consortium market, which has high economic relevance and strong growth

Sinqia (B3: SQIA3), a provider of software for the financial system in Brazil, announces the acquisition of Newcon Software SA and Newcon Tecnologia e Serviços Ltda., jointly, “NewCon”, specialist in consortia and main supplier of this market in America Latin. This is the 22nd and largest acquisition ever made by Sinqia.

NewCon is one of the main technology providers for the financial system in Brazil, specializing in software used by more than 80 consortium administrators linked to the main financial conglomerates and vehicle manufacturers, in addition to independent companies. Its team is made up of more than 190 employees with extensive experience in the business.

The acquisition aims to strengthen Sinqia's position, with a comprehensive product portfolio and a robust customer base, and broaden avenues of growth for the Sinqia Digital unit. “We will intensify the transformation in the consortium market, supporting our customers and accelerating the penetration of digital onboarding, digital signature and digital billing solutions that are already part of Sinqia's portfolio”, comments Thiago Rocha, Chief Financial and IR Director.

According to data from the Central Bank of Brazil, the Brazilian consortium market corresponds to 3.9% of GDP and serves 8 million consortium members. The more than 130 consortium administrators traded credits of R$ 181.8 billion from January to October 2021, an increase of 38.1% over the same period of the previous year. According to the executive, the outlook for the market is promising, as the consortium becomes a product with more appeal in a scenario of high interest rates.

This acquisition is one of the most important ever made by Sinqia, and reaffirms its commitment to the consolidation strategy. “NewCon is a relevant company, which has shown consistent growth and high profitability since we met, more than ten years ago. It takes our company to a new level”, concludes Rocha.