Nearshore Americas

Brazilian Totvs Spins Off its Payroll Outsourcing Unit to Propay SA

Totvs, Latin America’s largest corporate software company, has spun off its payroll outsourcing services unit Totvs RO in order to focus on its core business of software development.
In a deal signed last week, Brazilian HR outsourcing firm Propay SA took full control of the Totvs payroll unit for US$1.6 million. Some reports say Totvs bought RO only seven years ago for roughly US$1 million.
Headquartered in Sao Paulo, Propay counts Libra Group, Decathlon, Valeo and Mercedes-Benz Bank among its customers. Propay is one of the fastest growing business process outsourcing (BPO) firms in Brazil. It has around 370 employees and processes approximately 70,000 pay slips.
With around 160 employees in Brazil, Totvs RO serves more than 80 clients, including Volvo, Burger King, Accor, and Nielsen, and processes in excess of 90,000 paychecks a month.
Once the deal is finalized, Totvs RO will be re-branded as Propay RO, but will continue to provide HR services for Totvs operations around the world.
The Brazilian outsourcing sector is no stranger to mergers. Last year, TMF Group acquired Priori, the outsourcing division of PwC Brazil, with offices in Barueri, Rio de Janeiro and Ribeirao Preto.
“With this move, Totvs will focus its attention on the segment it is specialized in, bringing in a partner focused on HR outsourcing services,” a spokesperson for the company stated in a press release.
“We believe that the combination Propay’s know-how and Totvs software platforms will help Propay RO to become more competitive in this market,” said Leonardo, Commercial Director and Marketing Propay.
With more than 8,000 employees and an office in US Silicon Valley, Totvs is placing much emphasis on developing next-generation technologies such as data analytics and artificial intelligence.

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Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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