São Paulo, January 30, 2020 – LINX S.A. (B3: LINX3; NYSE: LINX) in compliance with the provisions of Article 157, Paragraph 4 of Law no. 6,404, of December 15, 1976, as amended and in effect (“Brazilian Corporate Law”), and CVM Instruction no. 358, of January 3, 2002, as amended, hereby announces the acquisition of the totality of Esmeralda Serviços Digitais Ltda, Safira Serviços Digitais Ltda, Ametista Serviços Digitais Ltda and Diamante Serviços Digitais Ltda (“PinPag”), through the execution, today, of the Purchase and Sale Agreement between the sellers and Linx Pay Meios de Pagamento Ltda. (“Linx Pay”), an indirect subsidiary of Linx S.A.

Founded in 2006, PinPag is fintech specialized in means of payment and offers customized and disruptive installment solutions for retailers. PinPag’s gross revenue for 2019 was BRL 68.5 million.

For the acquisition, Linx will pay a total of BRL 135.0 million in cash and, additionally, subject to the achievement of financial and operational targets for the years between 2021 and 2022, it will pay the amount of up to BRL 65.0 million.

The acquisition of PinPag is another step by Linx to reinforce the cross selling strategy of financial services for its verticals, especially for DMS (car dealership management). In addition, the rationale is to strengthen the financial services (Linx Pay Hub) portfolio for the base of 17,000 PinPag customers, representing a great growth opportunity for Linx.

The acquisition was approved by the Company´s Board of Directors on the date of the Contract signing, pursuant to article 23, item (xxvii) of the Company’s Bylaws, with approval Shareholders´ Meeting being waived, since this acquisition is not covered by the article 256 of the Brazilian Corporate Law.

 


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ri@linx.com.br