Business

Brazilian Linx shareholders approve Stone's offer

The acquisition is expected to transform StoneCo into an integrated software and payments provider

Photo: REUTERS/Paulo Whitaker
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  • The deal will make Linx a new software business unit for Stone;
  • Stone’s president believes that the deal with Linx will be approved by Brazil’s watchdog and that the analysis should take three to six months.

 The software firm Linx shareholders approved on Tuesday the acquisition offer proposed by the StoneCo card processor, the company said in a fact relevant to the market.

StoneCo increased its offer on Tuesday afternoon and proposed to pay BRL 33.56 plus 0.0126774 class A shares of the company per Linx share, in a deal of approximately BRL 6.8 billion.

READ ALSO: Founders of Brazil’s Linx allowed to vote on StoneCo’s offer

The acquisition is expected to transform StoneCo into an integrated software and payments provider at a time when new rivals and new technologies – such as the PIX instant payments platform, launched this week by the Brazilian Central Bank – are transforming the payments industry in Brazil.

If completed, the deal will make Linx a new software business unit for Stone, led by executives from both companies. The operation depends on the approval of the Brazilian competition watchdog.

READ ALSO: Brazilian Stone has a 30% rise in net profit in the 3rd quarter; and increases its offer for retail software platform Linx

Stone’s president, Thiago Piau, said he is confident that the deal with Linx will be approved by Brazil’s watchdog and that the analysis should take three to six months. According to Piau, Stone intends to offer customers lower prices as the company’s payment services and Linx software will be integrated.

Piau also stated that the company remains focused on small and medium-sized companies and that it continues to evaluate opportunities for new acquisitions.

(Translated by LABS)