XP Inc. - XP STOCK NEWS

XP Inc. (NASDAQ: XP) has announced a binding agreement to merge with Banco Modal (B3: MODL11), offering up to 19.5 million newly issued XP shares, which represents a 35% premium over Banco Modal's average price in the last 30 days. The merger aims to disrupt the Brazilian financial industry and enhance market competitiveness. As of September 2021, the combined active clients of XP and Modal reached 3.8 million, contrasting with the major banks' 457 million relationships. The agreement is subject to regulatory approvals, including from the SEC and Brazilian Central Bank.

XP Inc. (NASDAQ: XP) has signed an agreement to acquire a 49.9% stake in the real estate financing startup Direto from Direcional Engenharia, pending regulatory approval. This strategic investment allows XP to leverage its technology and funding solutions alongside Direcional's expertise in the Brazilian real estate market, which is worth R$ 800B as of October 2021. The partnership aims to enhance XP's offerings, including property loans, home equity products, and receivables portfolios, thus expanding its operations in a potentially lucrative real estate segment.

XP Inc. (Nasdaq: XP), a leading financial platform in Brazil, will host its Investor Day 2021 virtually on December 15, 2021, from 8:00am to 11:00am ET. The event will be accessible in both English and Portuguese, with connection details to be shared soon. XP aims to revolutionize the financial services sector by educating new investors, democratizing access to financial products, and providing exceptional client experiences. An event replay will be available on their investor relations website.

XP Inc. (Nasdaq: XP) has acquired a minority stake in Vista Capital, a prominent Brazilian equity and hedge fund manager with over R$4.5 billion in Assets Under Management (AUM). This acquisition aligns with XP's strategy to create a comprehensive ecosystem of financial managers and enhance market liquidity. Vista's leading fund has achieved a remarkable 444% return since inception. This collaboration is expected to expand XP's product offerings and foster growth in AUM, further democratizing investment access for Brazilians.

XP Inc. (NASDAQ: XP) reported robust 3Q21 results, demonstrating significant growth despite market uncertainties. Total gross revenue reached R$3.37 billion, up 50% year-over-year, driven by a strong Retail business, which alone accounted for 80% of this growth. Active clients grew 25% to 3.3 million, while the company’s assets under custody (AUC) reached R$789 billion, up 40% year-over-year. Adjusted net income surged 82%, reflecting improved margins and operational efficiency. The successful spin-off from Itaú Unibanco enhances corporate governance and investor base, positioning XP for future growth.

XP Inc. (Nasdaq: XP) announced the acquisition of a minority stake in AZ Quest, a prominent independent asset management company in Brazil, as part of its strategy to enhance its financial ecosystem. This co-investment with the XP Private Equity fund aims to boost distribution and expand synergies in fund penetration across Brazil's largest open platform. With R$17.3 billion in assets, AZ Quest offers diversified products, and this partnership is expected to facilitate growth opportunities in the local market.

XP Inc. (Nasdaq: XP) reported strong growth in its 3Q21 KPIs, with a credit portfolio reaching R$8.6 billion, a 122% increase year-to-date. The company maintained a 0.0% Non-Performing Loan (NPL) ratio. Assets Under Custody (AUC) hit R$789 billion, up 40% year-over-year, despite a 3% quarterly decline. Total net inflows were R$37 billion in 3Q21, down from R$75 billion in 2Q21. Active clients grew to 3.3 million, a 25% increase year-over-year. The company will release its complete financial results on November 3, 2021.

XP Inc. (Nasdaq: XP) announced the successful merger with XPart during its Annual General Meeting on October 1, 2021. Following the merger, XPart ceased to exist, allowing its stockholders to hold direct interests in XP. The Brazilian Depositary Receipts (BDRs) of XP are set to trade at B3 starting October 4, 2021. The merger is expected to enhance XP's corporate governance and capital structure, increasing the controlling shareholders' voting rights from 55.4% to 68.3%. This move is aimed at improving strategic decision-making flexibility by removing certain veto rights.

XP Inc. (Nasdaq: XP) has acquired a minority stake in Virgo, a financial solutions company, aiming to enhance capital market access for small and medium enterprises in Brazil. This investment will fuel Virgo's plans to develop a marketplace for debt and equity instruments, expedite hiring, and bolster technology investments. With over 105 institutional investors, Virgo can facilitate fundraising up to R$50 million in less than 12 hours. The partnership aligns with XP's vision to become the leading service provider for Brazilian SMBs, reinforcing its role in the evolving capital markets landscape.