Totvs Expands Insurance Software Reach with Agger Acquisition as Revenue and Profit Climb

Brazilian software giant Totvs S.A., a leader in enterprise resource planning and business management solutions, reported strong financial results for the first quarter of 2024.

The company also announced the acquisition of Agger S.A. for R$260 million ($47 million), according to official filings and statements. Totvs posted consolidated net revenue of R$1.3 billion ($236 million) in the first quarter, marking a 17% increase over the same period in 2023.

This growth came from advances across all revenue lines, with management recurring revenue up 17%, mainly driven by a surge in SaaS revenue.

SaaS revenue reached R$448 million ($81 million), growing 27% year-over-year and reflecting the company’s focus on subscription-based business models.

The company’s adjusted EBITDA for the quarter stood at R$306.8 million ($56 million), up 10.7% from the previous year. The adjusted EBITDA margin was 24.6%, slightly lower than the previous year but still strong for the sector.

Totvs maintained a high customer retention rate of 98.7%, the highest in the last five quarters, supporting stable recurring revenue and long-term value.

Totvs Expands Fintech Footprint with Agger Acquisition

Totvs’s acquisition of Agger S.A., a software platform specializing in insurance solutions for brokers, aligns with its strategy to expand in financial technology. Agger reported gross annual recurring revenue of R$60 million ($11 million) in the first quarter of 2025 and employs about 150 people.

The deal, executed through Totvs’s subsidiary Dimensa, complements the portfolio of Quiver, another insurance software firm under Totvs, and is expected to create operational synergies.

On the balance sheet, adjusted costs rose 19.6% year-over-year to R$319.3 million ($58 million), mainly due to investments in acquisitions and technology.

Adjusted gross profit was R$798.7 million ($145 million), up 12.7% from the previous year, with an adjusted gross margin of 71.4%. Financial expenses remained stable, while financial revenues grew 24.5% to R$89 million ($16 million).

Totvs’s last twelve-month revenue reached $983 million, with an EBITDA of $242 million and a net profit of $137 million, according to public comps data. The company’s rule of 40—a key SaaS metric—stood at 43%, indicating balanced growth and profitability.

The real story is that Totvs is leveraging its market strength and recurring revenue base to expand into high-growth verticals like insurance technology. The Agger acquisition reflects a clear focus on sector consolidation and operational efficiency, positioning Totvs to capture more value in Brazil’s digital transformation landscape.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error

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