Brazilian credit card processor StoneCo on Tuesday, August 11, announced it would buy software company Linx in a 6.04 billion reais (US$1.12 billion) stock and cash deal that will transform it into an integrated provider of software and payments.
StoneCo stated it is interested in Linx’s 70,000 retail clients, which now process payments with gross transaction volume of 300 billion reais (US$55.74 billion) through other providers, reported Reuters. The card processor also plans to offer them banking services and credit.
The move comes as card processors face fierce competition in Brazil, with prices under pressure. The acquisition of Linx, which has a partnership with Itau Unibanco’s Rede unit, would also provide StoneCo with a new revenue line.
Full Content: Reuters