Brazilian fintech company StoneCo has raised its bid to acquire retail management software provider Linx to BRL35.1 ($6.52) per share.
In this connection, StoneCo has amended terms of the $1.12bn definitive agreement it signed with the Brazilian software company in August 2020. As per the previously signed agreement, the fintech company offered BRL33.76 ($6.25) per share to the software provider.
As per the terms of the deal, the fintech company will merge STNE Participações, its controlled company that holds the software investments business, with Linx.
StoneCo had to sweeten its offer after Brazilian software company Totvs recently bid BRL34.09 ($6.31) per share or $1.13bn to acquire Linx.
StoneCo gets support from Linx’ board members for the revised offer
The fintech company said that the revised agreements have been approved by Linx’ independent board members. StoneCo said that the amended agreements enhance the attractiveness of the deal and address the suggestions put forward by Linx’ founding stakeholders.
StoneCo stated: “It is part of Stone culture to always act in the best interest of its clients, its team, shareholders and the overall society. The transaction with Linx represents a significant value creation opportunity for all stakeholders and will help accelerate Stone’s mission of empowering Brazilian merchants of all sizes to manage their business more effectively through technology.”
Linx is engaged in developing and providing integrated software solutions to more than 70,000 retail clients across more than 100,000 storefronts via a software-as-a-service (SaaS) business model. The company, besides being one of the major retail management software providers in Brazil, is said to have a strong footprint in e-commerce software solutions in the region.
Linx’ end-to-end platform is made up of three product lines, which are integrated business management software provider Linx Core, e-commerce platform provider Linx Digital, and payment processing solutions provider Linx Pay Hub.
At the time of announcing the deal, StoneCo said that the merger of STNE and the retail management software provider will help fast track its goal of empowering Brazilian merchants of all sizes to handle their businesses more effectively by leveraging technology.
