PicPay: Acquisition of Kovr approved; new earnings vertical unlocked

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PicPay: Acquisition of Kovr approved; new earnings vertical unlocked

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PicPay

Acquisition of Kovr approved; new

earnings vertical unlocked

Maintain Rating: BUY | PO: 27.00 USD | Price: 11.91 USD

BCB approval was the final step 24 July 2026

PicPay received final approval from the Brazilian Central Bank (BCB) for the acquisition Equity

of the insurer Kovr, following the previous approval of the antitrust authority (CADE) and

Mario Pierry

the insurance regulator (SUSEP). The deal was announced in 3Q25 and marks a key Research Analyst

milestone in PicPay's strategy to build a full financial platform, shifting to a business BofAS mario.pierry@bofa.com

model based on underwriting, not only the distribution, of financial products. The

Antonio Ruette >>

acquisition value could reach R$657mn (5.1x '25E P/E), considering upfront payment of Research Analyst

R$479mn (to be settled in 3Q26) and earn-outs based on profitability targets. Merrill Lynch (Brazil) antonio.ruette@bofa.com

Kovr brings full insurance underwriting capabilities… AugustoResearch UeharaAnalyst >>

Kovr is a fully digital insurer, underwriting life and non-life products (credit life, Merrill Lynch (Brazil) augusto.uehara@bofa.com

massified insurance, residential, rent, D&O, personal & accident), plus private pension

Ernesto Gabilondo >>

plans and premium bonds. PicPay was already a leading digital insurance distributor Research Analyst

(operating with other underwriters) and now should shift to work exclusively with Kovr. Merrillernesto.gabilondo@bofa.comLynch (Mexico)

… and could lift medium-term earnings by c.10%

We expect Kovr to deliver net income of R$200-250mn in ‘26, modestly below our

original forecast given a delay in the approval process. This represents growth of 50- Stock Data