Quick Take
Linx. S.A. (LINX) has announced the acquisition of PinPag for up to BRL 200 million (~ $46 million) in cash and milestone-based earn-outs.
PinPag has developed payment solutions primarily aimed at service sectors within Brazil.
LINX will pay a hefty price for the deal and the stock appears excessively valued, so my bias is NEUTRAL.
Target Company & Market
Sao Paulo, Brazil-based PinPag was founded to provide a range of payment processing gateway services to businesses in Brazil.
Below is an overview video of the firm's institutional offerings (in Portguese):
Source: