Feedz Acquisition: Key Details, Impact, and What Comes Next

TOTVS has acquired a 60% stake in Feedz, a prominent Brazilian HR Tech company, for R$ 66 million. This strategic move is set to bolster TOTVS's position in the Human Experience Management sector, enhancing its portfolio with Feedz's innovative engagement solutions. The acquisition underscores TOTVS's commitment to providing comprehensive digital platforms for managing the entire employee journey.

What Is Feedz?

Founded in 2018, Feedz is a performance management platform designed for companies and HR departments. Its core services include performance evaluation, experience evaluation, personal department management, recruitment and selection, goals and objectives (OKR), and climate surveys. Feedz stands out in the market by automating processes to save time and money, offering a user-friendly and gamified interface, and integrating seamlessly with existing tools. Trusted by over 1500 companies and used by over 200,000 employees, it ensures high daily usage rates and compliance with LGPD.

Who Acquired Feedz?

TOTVS is a leading technology company in Brazil, specializing in providing comprehensive systems and platforms for businesses across various sectors. Its key products include ERP, RH, Analytics, Fluig, AI, Data Intelligence, Cloud, CRM, and Techfin solutions. TOTVS holds a dominant market position with a strong presence in 12 market segments and over 70,000 clients. Recognized as the largest technology company in Brazil, it plays a pivotal role in driving digital transformation and innovation in the Latin American market.

When Was Feedz Acquired?

TOTVS acquired Feedz on September 1, 2022. This acquisition aligns with the growing demand for Human Experience Management (HXM) solutions, which are outpacing the global ERP market. The timing is significant as companies increasingly seek digital and unified platforms to manage the entire employee journey, reflecting broader industry trends towards comprehensive HR tech solutions.

Why Was Feedz Acquired?

• Market Expansion: The acquisition of Feedz allows TOTVS to enhance its Human Experience Management (HXM) solutions, thereby strengthening its portfolio in the Human Resources area. This strategic move positions TOTVS to offer a more comprehensive platform that meets the needs of customers throughout the entire employee journey.
• Technology Integration: Feedz specializes in advanced tools for Performance Management and Engagement Management, including OKRs, Organizational Climate Surveys, Feedback, 1on1s, PDIs, Emotional Thermometer, and eNPS. By integrating these technologies, TOTVS enhances its existing HR technology offerings, providing more robust and gamified solutions to its clients.
• Competitive Advantage: The acquisition strengthens TOTVS's competitive edge by adding Feedz's innovative HR Tech solutions to its portfolio. This enables TOTVS to offer more integrated and advanced solutions, improving its market position and value proposition. Additionally, access to Feedz's established customer base and unique distribution channels further solidifies TOTVS's market presence.

Acquisition Terms

• Acquisition Price: TOTVS acquired 60% of Feedz's shares for R$ 66 million. The remaining 40% of shares will be acquired in the first half of 2025, with the price determined by parameters defined in the contract.
• Payment Method: The initial payment for the 60% acquisition was made in cash. The payment method for the remaining 40% is not explicitly mentioned but will follow the parameters defined in the contract.
• Key Conditions or Agreements: The acquisition of the remaining 40% of shares is set to occur in the first half of 2025, with the price contingent on Feedz achieving specific performance goals. Other significant clauses or regulatory approvals were not publicly disclosed.

Impact on Feedz

The acquisition of Feedz by TOTVS has led to significant changes in the company's operations and management. With TOTVS acquiring 60% of Feedz's shares, the integration into TOTVS's ecosystem is expected to align Feedz's operational structure with TOTVS's strategic goals. This phased change in ownership, with the remaining 40% to be acquired by 2025, suggests a gradual shift in management practices to ensure a smooth transition. The collaboration aims to leverage Feedz's expertise in HR tech to enhance TOTVS's Human Experience Management (HXM) solutions, thereby expanding their market reach and operational efficiency.

In terms of product offerings, the acquisition has enabled TOTVS to integrate Feedz's advanced tools for Performance Management and Engagement Management into its existing portfolio. This integration is set to provide a more comprehensive HR management platform, benefiting both companies' customer bases. While specific employee reactions have not been detailed, the strategic benefits highlighted by executives suggest a positive outlook for the future. Customers, on the other hand, are likely to experience enhanced services and more robust HR solutions as a result of this acquisition.

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