Totvs to Acquire Linx Unit from StoneCo for $547.9 Million
ByAinvest
Tuesday, Jul 22, 2025 7:33 am ET1min read
STNE--
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
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
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