Brazilian internet company Locaweb announced this Tuesday (5) the acquisition of Squid, a company that connects influencers and content creators to brands, for BRL 176,5 million.
Additionally, according to Locaweb, sellers will have the right to receive an eventual ‘earnout‘, depending on the achievement of certain financial targets determined based on net revenue from Squid’s transfer, as defined in the contract.
Founded in 2014, Squid is part of the Creators Economy segment in Brazil, offering solutions and platforms to combine influencers and content creators with brands. Squid automates processes related to identifying, recruiting, managing, and paying digital influencers, reports Locaweb’s material fact to the Brazilian security commission (CVM).
Currently, Squid’s base has more than 100,000 influencers, and the company’s annual recurring revenue (ARR) is over BRL 100 million, reporting triple-digit growth in 2021, said Locaweb.
“The way people interact with brands has changed a lot over the past few years. Who has never bought a product or contracted a service after seeing someone they admire and follow on digital channels talking about it or simply using it. Squid is bringing to Locaweb the opportunity to democratize this content market in Brazil.” Says Fernando Cirne, CEO of Locaweb.
In recent months, Locaweb has been very active in the market. After raising BRL 575 million in its IPO, Locaweb made 17 acquisitions, according to data analytics platform Sling Hub.
The “acquisitions marathon” also includes companies such as Social Miner, Etus, Vindi, Melhor Envio, Connectplug, Samurai, Credisfera and Dooca Commerce.