SAO PAULO, Sept 17 (Reuters) - Mercado Pago, the

financial arm of Latin American e-commerce firm MercadoLibre ( MELI )

, announced on Wednesday the purchase of Nikos DTVM, a

Brazilian distributor of investment products, in a move that

marks the fintech's first acquisition in the country.

WHY IT'S IMPORTANT

Mercado Pago was responsible for about 43% of MercadoLibre's ( MELI )

total revenue across Latin America in the second quarter. It

said the deal is aimed at expanding the offering of financial

products in Brazil, increasing its client base and assets under

custody.

Brazil is the largest market for the Uruguay-based

MercadoLibre ( MELI ), the most valuable company in Latin America by

market cap.

ADDITIONAL CONTEXT

Nikos DTVM has been already acting since 2022 as a business

partner of Mercado Pago for the distribution of investment

products in Brazil. The acquisition does not include other

companies within the group Nikos, such as its asset manager.

KEY QUOTES

"Once completed, the acquisition of Nikos DTVM will enable

Mercado Pago to integrate its operations and internalize the

end-to-end customer journey more efficiently", Mercado Pago said

in a statement.

WHAT'S NEXT

The deal still requires approval from the Brazilian central

bank, according to Mercado Pago. The deal's financial terms were

not disclosed.