Arco Platform Limited’s $408.4 Million Acquisition of Sistema Positivo de Ensino

Itaú BBA served as exclusive financial advisor and Lobo de Rizzo and BMA – Barbosa, Müssnich, Aragão served as legal advisor to Arco. BTG Pactual served as exclusive financial advisor and Machado Meyer served as legal advisor to Positivo.

Arco Platform Limited, or Arco (Nasdaq: ARCE) has entered into a definitive agreement to acquire Sistema Positivo de Ensino (Positivo), one of the largest K-12 content providers to private schools in Brazil, for R$1,650 million in cash. With the acquisition of Positivo, Arco will expand its scale and more than double its reach to over 4,800 partner schools and 1.2 million students.

Under terms of the agreement, Arco will acquire Positivo for R$1,650 million in cash, with 50% due at the time of closing. The remaining 50% will be deferred over 5 years, with no payment in 2020, 10% paid in each of 2021 and 2022, and 15% paid in each of 2023 and 2024, all adjusted by the Certificate Deposit Interbank (CDI). The acquisition has been approved by the Boards of Directors of both Arco and Positivo. The transaction is not subject to any shareholder votes, but is subject to customary closing conditions, including antitrust and other regulatory approvals.

Lobo de Rizzo advised Arco Platform Limited with Rodrigo Millar de Castro Guerra, Rodrigo Roso, José Eduardo Marretti, Marcela Tavares de Vasconcelos, Nicolle da Silva Zennaro and Renata de Campos Nogueira.

BMA – Barbosa, Müssnich, Aragão advised Arco Platform Limited with Barbara Rosenberg, Camilla Paoletti, Maria Amaral de Almeida Sampaio and Gustavo Kastrup.

Machado Meyer advised Positivo Group with a team including Arthur Bardawil Penteado, Elton Minasse, Luciana Costa Engelberg, Maria Eugênia Novis, Mariana Meditsch. Abogadas Tatiana Machado Soares and Beatriz Medeiros Navarro Santos.

Involved fees earner: Maria Amaral de Almeida Sampaio – Barbosa, Müssnich & Aragào; Gustavo Kastrup – Barbosa, Müssnich & Aragào; Camilla Paoletti – Barbosa, Müssnich & Aragào; Barbara Rosenberg – Barbosa, Müssnich & Aragào; José Eduardo de Araújo Marretti – Lobo & de Rizzo; Renata de Campos Nogueira – Lobo & de Rizzo; Rodrigo Millar de Castro Guerra – Lobo & de Rizzo; Rodrigo Roso – Lobo & de Rizzo; Marcela Tavares de Vasconcelos – Lobo & de Rizzo; Nicolle Zennaro – Lobo & de Rizzo; Arthur Bardawil Penteado – Machado Meyer Advogados; Luciana Costa Engelberg – Machado Meyer Advogados; Tatiana Machado Soares – Machado Meyer Advogados; Beatriz Medeiros Navarro Santos – Machado Meyer Advogados; Mariana Meditsch – Machado Meyer Advogados; Elton Minasse – Machado Meyer Advogados; Maria Eugênia Novis de Oliveira – Machado Meyer Advogados;

Law Firms: Barbosa, Müssnich & Aragào; Lobo & de Rizzo; Machado Meyer Advogados;

Clients: Arco Platform Ltd; Positivo Group;

Author: Ambrogio Visconti.