Business

Brazil's Locaweb acquires Melhor Envio logistics platform for BRL 83 million

After raising BRL 575 million at the beginning of the year, Locaweb executives said in June that the company was in advanced negotiations to acquire several smaller companies

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  • Sellers in the operation will have the right to receive an eventual earnout;
  • The platform’s net revenue should exceed BRL 30 million in 2020.

Brazilian Locaweb, which operates web services, announced on Monday the acquisition of the logistics platform Melhor Envio, with the closing price of the acquisition set at BRL 83 million.

Sellers in the operation will have the right to receive an eventual earnout, depending on the achievement of certain financial goals determined based on the net operating revenue of Melhor Envio, Locaweb said.

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Founded in 2015, in the southern city of Pelotas, Melhor Envio offers a logistics platform that connects small and medium-sized salespeople to the main carriers and logistics companies in the country.

The platform’s net revenue should exceed BRL 30 million in 2020, reaching more than 7 million paid shipments and almost 100,000 active users in its base, according to Locaweb.

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After raising BRL 575 million at the beginning of the year, Locaweb executives said in June that the company was in advanced negotiations to acquire several smaller companies.

READ ALSO: Brazilian Locaweb acquires Etus, the second firm acquisition in a week

According to Locaweb, social isolation measures and the consequent increase in demand for e-commerce and parcel delivery services created opportunities to serve more companies that did not use these tools.

(Translated by LABS)