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Linx picking up SetaDigital
Posted on Wednesday, 16 October 2019 14:45
Brazilian software developer Linx has signed on the dotted line to pick up SetaDigital, a provider of technology for the footwear retail segment.

Under the terms of the transaction, the buyer will pay BRL 28.00 million (USD 6.70 billion) in cash for the business, with a further earnout of BRL 8.80 million due at a later date, subject to certain financial goals being achieved in the fiscal years from 2019 to 2021.

Linx’s board has already given its seal of approval to the purchase, although it is not clear when completion can be expected to occur.

The buyer said the move is in line with its plans to reinforce its cross-selling strategy and strengthen its apparel vertical while increasing its customer base.

SetaDigital was founded in 2005 and provides ERP and POS technology for the footwear retail sector.

The company, which has a client base numbering in excess of 1,200, is expected to generate gross revenue of BRL 15.00 million in 2020.

Zephyr, the M&A database published by Bureau van Dijk, shows that Linx’s most recent acquisition was announced in June 2018, when it paid BRL 67.00 million (including a BRL 18.00 million earnout) for Sao Paulo-based digital sales software developer Digital Commerce Group.

This was preceded by April 2018’s BRL 25.00 million purchase of Unico Sistemas e Consultoria, an e-commerce purchasing behaviour application developer.

Other companies to have been acquired by Linx in recent years include Itecgyn Informatica, Synthesis Empreendimentos, Chaordic Systems and Neemu Servicos em Tecnologia da Informacao.

The buyer, which has been publicly traded since February 2013, posted net operating revenues of BRL 192.65 million in the second quarter of 2019, compared to the BRL 170.75 million generated over the corresponding timeframe in 2018.

© Zephus Ltd