BRAZILIAN LINX ACQUIRES SETA DIGITAL
29/11/2019
Diego Gutiérrez
BRAZILIAN LINX ACQUIRES SETA DIGITAL

Linx, the Brazilian leader in retail software, has acquired Seta Digital, a company specialising in footwear point-of-sale and management systems.

The operation could reach 9.2M$ if the financial targets are met.

While the procurement industry, especially the machine industry, is facing strong competition, Linx operates in an almost unrivalled segment.

It offers complete payment solutions ranging from software to point-of-sale terminals.

In fact, as part of its cross-selling strategy, it has just bought the firm Seta Digital.

GROWTH

This M&A transactions-y-acquisitions-m-a/">procurement will enable it to start operating in the fashion retail sector. It will also broaden its customer base.

As is now customary in the company, the transaction is carried out by paying 7M$ in cashwhile others 2.2M$ are subject to the achievement of financial and operational targets between 2019 and 2021..

The idea is to use Linx's dominance in the field of retail management software in Brazil, around 41.3% market share, to tap into a new potential revenue stream and become a bigger business.

Its strategy in recent times has been focused on this growth.

ACQUISITION OF HYPER

Linx has made 30 purchases since 2008, approximately one every four and a half months.

These purchases included niche solution providers for apparel retailers, pharmacies, petrol stations and e-commerce players.

Specifically, last April it bought Hiper, a start-up providing cloud-based management solutions for micro and small retailers.

Founded in 2012, it has 15,000 active customers in 2,000 municipalities and more than 600 distribution channels.

You can pay up to 50M$ for the company, depending on the objectives.

In addition to these acquisitions, the firm has also invested in many partnerships, and has integrated with, among others, Ame Digital, Mercado Livre, y Vtex.

LINX

In addition to the aforementioned management software solutions, this company also provides telecommunications services, technical assistance, consultancy and training..

The Linx payment centre includes software and management systems to accept card payments and even via a CDR code.

On this point, it is worth noting that in June 2019, the firm launched the Linx accounta payment solution that enables consumers and merchants to make mobile payments, transfers and other banking services.

DIGITAL MUSHROOM

Based in Cascavel, a city of 318,000 inhabitants west of Paraná, Seta Digital was founded in 2005.

It has 70 employees and more than 2,100 customers.

Among them, big names like Melissa stand out.

It is a reference company in ERP and POS solutions for the footwear sectorwhich is dedicated to the development and supply of software and services for the retail trade in that sector.

By 2020, it plans to have a turnover of almost 4M$.

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