Silvio Santos wants to sell even the "Chest of Happiness" (a popular Brazilian TV show).
Businessman is willing to give up the business that made him famous and wealthy; Cielo pays R$ 40 million for Braspag.
247_ After closing the sale of Braspag – an online transaction processing company of the SS Group – to Cielo for R$ 40 million, businessman Silvio Santos leaked his entire business restructuring strategy. He is even ready to sell his original platform, Baú da Felicidade (Chest of Happiness), which he acquired in 1959 from the late comedian Manuel da Nóbrega. It was from Baú, whose salespeople went door-to-door in São Paulo neighborhoods selling payment booklets that promised merchandise upon payment and regular raffles throughout the process, that Silvio built his empire, which was shaken by the collapse of Banco PanAmericano. Now, the owner of SBT makes it clear that he will focus his efforts on growing the Jequiti cosmetics brand and the Tele Sena capitalization bond. With this, Cielo paid for its leadership in the online payments market.
Braspag's function is very specific and, therefore, it holds a 65% market share. It is responsible for the integration between the online store, financial institutions, and acquiring networks (Cielo or Redecard, for example). When a consumer makes a payment for an online purchase, it is through Braspag's system that this transaction is captured, authorized, and processed. And it doesn't matter if the payment method is by card, direct debit, or bank slip. For Cielo, it's a chance to expand its business in the virtual world and, mainly, to start operating in diversified markets that don't have cards as the primary payment method. Investors liked the acquisition, and CIEL3 shares appreciated by more than 3,5% on Tuesday the 24th.
Founded in 2005, Braspag became part of the Silvio Santos Group in 2009. The purchase cost R$ 25 million. At that time, the idea was to expand the businesses, especially those that could strengthen the participation of Banco PanAmericano. However, with the frauds discovered last year, which left a hole of more than R$ 4 billion, businessman Silvio Santos decided to sell some businesses that no longer made sense in the short term. Braspag was on that list and yielded R$ 15 million to the coffers of the owner of Baú, who wants to become the former owner.