AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Totvs to Acquire Linx Unit from StoneCo for $547.9 Million
ByAinvest
Tuesday, Jul 22, 2025 7:33 am ET1min read
Brazilian software company Totvs has agreed to buy StoneCo's Linx unit for 3.05 billion reais ($547.90 million). The deal aims to strengthen Totvs' position in the retail segment. Totvs has been interested in Linx since 2020, and the transaction is expected to be financed through cash reserves and debt instruments. The deal requires approval from Brazil's antitrust watchdog.
Brazilian software company Totvs (TOTS3) has agreed to purchase StoneCo's Linx unit for 3.05 billion reais ($547.90 million), according to a recent announcement. This acquisition aims to bolster Totvs' presence in the retail segment and marks the company's long-standing interest in Linx, which dates back to 2020 [1].The deal, expected to be funded through Totvs' cash reserves and debt instruments, is subject to regulatory approval from Brazil's antitrust watchdog. The transaction is anticipated to strengthen Totvs' position in the retail software market, where it has been actively seeking to expand its offerings [1].
StoneCo, a prominent player in the financial services industry, has shown strong revenue growth despite recent market volatility. The company's stock has seen a significant price increase of 57% over the past six months, though it remains undervalued based on its Fair Value assessment [3]. The Linx unit represents approximately 79% of the software segment's revenue and 71% of its profitability in 2024 [3].
In a separate transaction, StoneCo has sold SimplesVet, a veterinary software solution, to PetLove for R$140 million, representing approximately four times its revenue [3]. This deal has received approval from CADE, Brazil's antitrust authority.
The divestments are part of StoneCo's strategy to streamline operations and focus on its core business. With a solid current ratio of 1.39 and management actively buying back shares, StoneCo appears well-positioned for its strategic transformation [3].
References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3TJ0A1:0-brazil-s-totvs-agrees-to-buy-stoneco-s-linx-unit/
[2] https://economictimes.indiatimes.com/industry/services/retail/shein-downloads-cross-2-million-q-com-channel-reports-2-fold-growth-reliance-retail/articleshow/122769722.cms
[3] https://www.investing.com/news/company-news/stoneco-to-sell-majority-of-software-segment-for-r319-billion-93CH-4145574
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Incβs editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
ο»Ώ
No comments yet