M&A Venture Capital
Totvs Buys Linx from Stone in a $600 Million Deal
Itaú BBA, JP Morgan, Morgan Stanley and BTG Pactual served as financial advisors to the deal

Totvs Buys Linx from Stone in Strategic Major Software Deal in Brazil
Totvs buys Linx from Stone for $600 Million or BRL $3.05 billion in cash, acquiring 100% of the Brazilian retail software company. The deal, officially announced on Tuesday, July 22, is still subject to approval by Brazil’s antitrust authority (CADE) before closing.
Strategic Gains as Totvs Buys Linx
This move strengthens Totvs’ position in retail technology. Under the agreement, Stone will retain Linx’s net cash of approximately BRL $360 million, which pushes the total enterprise value of the Totvs–Linx deal to BRL $3.41 billion. All cash generated between signing and closing will also remain with Stone
“With this acquisition, we will strengthen our position in the retail sector, expand our portfolio, and enhance our ability to meet the needs of all types of retailers,” said Totvs CEO Dennis Herszkowicz. “This is a major step forward in our tech offering and will allow us to deliver innovations—including in AI—to Linx clients.”
The Totvs acquisition of Linx ends a five-year ownership period by Stone, which bought Linx in 2020 for BRL $6.7 billion after a competitive bidding war with Totvs. The price of the transaction means a 50% haircut from the price Stone paid for the company in 2000.
Missed Synergies and a New Opportunity
Stone’s initial expectations for synergies between its financial services and Linx’s retail software were not fully met. Limited integration and credit losses among small merchants impaired the post-merger performance.
Market analysts now expect Totvs to succeed where Stone didn’t. According to one executive, the acquisition could double Linx’s EBITDA within a short timeframe.
SimplesVet and Software Restructuring
In parallel with the Linx sale, Stone also announced the divestiture of SimplesVet, a veterinary clinic management platform, sold to PetLove for R$140 million. The deal, already approved by CADE, reflects Stone’s strategy to streamline its software portfolio.
With Linx and SimplesVet sold, Stone’s remaining software assets—including Reclame Aqui and Questor—generate around BRL $326 million in revenue and BRL $32 million in EBITDA annually. Strategic options under consideration include further sales or integration into Stone’s core business.
The Firms Behind the Deal
Major financial advisors assisted the Totvs-Linx acquisition
Until this publication, the companies have not released their legal advisors but several prominent financial advisors supported the transaction:
- Itaú BBA served as financial advisor to Totvs, assisting in structuring and evaluating the offer.
- JP Morgan, Morgan Stanley, and BTG Pactual advised Stone throughout the sale process.
These institutions played a key role in negotiating and aligning valuations for both parties.
What Comes Next for Stone and Totvs
Stone stated it will disclose its plans for the transaction proceeds after the regulatory process is completed. The company also emphasized it may return capital to shareholders in the absence of immediate growth opportunities.
“This transaction is an important step in the restructuring of our portfolio, aligned with the company’s long-term strategy. We remain focused on the most strategic areas to drive growth,” said Pedro Zinner, CEO of Stone.
Totvs buys Linx in a deal that reshapes the retail tech landscape in Brazil and reflects strategic realignment by both companies—Totvs doubling down on innovation, and Stone refocusing on its core payments business.
Resumo em português:
A Totvs comprou a Linx em um negócio histórico que redefine o mercado de ERP e software corporativo no Brasil.
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