Totvs in Talks to Acquire Linx, Eyes Further Brazil Deals in 2025
Brazilian software company Totvs SA is actively negotiating to acquire Linx, the retail software unit of StoneCo, and is also exploring other acquisition opportunities within Brazil for 2025, CEO Dennis Herszkowicz told Reuters.
Totvs has pursued Linx since 2020, but StoneCo ultimately acquired the company in a 6.7 billion reais ($1.22 billion) deal. In April, Totvs entered exclusive talks to buy Linx from StoneCo. Herszkowicz said the acquisition would be beneficial given Linx’s leadership in retail software, but emphasized that closing the deal is not essential for Totvs’ growth.
“Totvs is very broad. And our portfolio is very wide. There isn’t one acquisition that solves everything we want to solve,” he said. The accelerating adoption of AI, cloud computing, and other digital technologies is creating multiple acquisition opportunities, which Totvs views as effective growth shortcuts.
While Totvs operates in several Latin American countries, its focus remains firmly on Brazil, which accounts for the majority of its business. Herszkowicz declined to comment on the timing or financial terms of the Linx negotiations or other potential deals.
The CEO also denied reports that Totvs plans to sell its stake in Dimensa, a fintech joint venture with Brazil’s stock exchange operator B3. He confirmed the company has not engaged advisors for such a sale and said no transaction is currently underway.
Totvs intends to fund acquisitions without needing to divest assets, underscoring the company’s strong financial position and strategic flexibility.