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UPDATE 2-BTG buys Orama as Brazil's financial sector consolidation continues

(Rewrites throughout with context on consolidation in Brazil's financial sector and comments from a BTG executive)

SAO PAULO, Oct 2 (Reuters) - Brazilian investment bank BTG Pactual on Monday announced a deal to buy brokerage Orama DTVM, in yet another sign of consolidation in the sector that saw several finance companies acquired by larger rivals in recent years.

The agreement adds to a number of acquisitions recently closed by BTG, including those of brokers Planner and Elite and holding group Universa, while rivals such as XP Inc also remained active in the mergers and acquisition market.

BTG Pactual said in a securities filing it will pay 500 million reais ($98.72 million) for all of Orama's activities with the exception of its fund management business, a deal that is part of its strategy to expand in digital platforms.

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The transaction, it said, will allow it to increase its client base while advancing in the offering of products and services for individuals.

Orama has a total 18 billion reais of assets under custody and about 360,000 clients, it noted.

Deal flow in Brazil's financial sector has been high recently, with the moves by BTG - Latin America's largest investment bank - part of a broader trend that saw finance giants purchasing smaller companies.

BTG's main rival XP, for example, last year agreed to acquire Credit Suisse-backed investment platform Banco Modal, after also buying brokerages Rico, Clear, Singulare and several asset managers.

Santander Brasil in the meantime bought online broker Toro Investimentos, while Itau Unibanco purchased Ideal and Avenue. Bradesco has owned broker Agora since the late 2000s.

BTG's head of digital platforms, Marcelo Flora, said in a statement that the Orama deal will provide the lender with "scale gains", citing lower fixed costs, efficiency gains and non-specified synergies.

The acquisition is still pending approval from Brazilian regulators and the central bank. Sellers include hospital chain Rede D'Or and Globo Ventures, an investment vehicle of media conglomerate Grupo Globo, which had a 25% stake in Orama each.

($1 = 5.0647 reais) (Reporting by Gabriel Araujo; Editing by Steven Grattan and Emelia Sithole-Matarise)