Mercato Partners Acquisition Corporation (NASDAQ:MPRA) ("Mercato Partners") today announced that it has entered a non-binding letter of intent ("LOI") for a business combination with Nuvini S.A. ("Nuvini"). Nuvini acquires and manages a portfolio of high growth software-as-a-service companies.
Headquartered in Sao Paulo, Brazil, Nuvini is the leading private serial software business acquirer in Latin America. With six companies in its portfolio, Nuvini intends to use funding and capital market access to continue expanding its acquisition strategy. Under the terms of the LOI, Mercato Partners and Nuvini would become a combined entity, with Nuvini's existing equity holders rolling over 100% of their equity into the combined public company.
Mercato Partners expects to announce additional details regarding the proposed business combination when a definitive agreement is executed, which is expected later in the first quarter of 2023.
No assurances can be made that the parties will successfully negotiate and enter into a definitive agreement, or that the proposed transaction will be consummated on the terms or timeframe currently contemplated, or at all. Any transaction is subject to board and equity holder approval of both companies, regulatory approvals and other customary conditions. Upon closing the transaction, the combined public company is expected to enjoy increased access to profitable acquisition targets by means of its enhanced market positioning and capital. "This is a unique opportunity for us to invest in a high-quality portfolio of growing and profitable software companies in an economy that is top 10 globally and the third largest in the Americas," said Greg Warnock CEO of Mercato Partners.