While sentiment among Brazilian dealmakers has generally reflected the cautious mood globally, one large information technology (IT) deal could drive more M&A activity in the country.

Totvs, one of Brazil’s biggest IT companies, is making a second attempt to purchase Linx, a retail management software provider, after the vendor, Stone, reportedly dropped its asking price.

Should the deal go through, it would create a business that could face some regulatory action from the Brazilian authorities.

Additionally, due to the size of the deal, other players in Brazil’s management software and financial payments sectors may start prepping their own deals to keep up with a larger competitor.

Thiago Barrozo, Mergermarket’s Latin America editor, joins Dealcast host Julie-Anna Needham to discuss the outlook for Brazilian deals hinging off Totvs/Linx including:

• Which other companies made bids for Linx?
• Why did Stone cut its price expectations?
• What happened the first time Totvs tried to buy the target in 2020?

All this and more in this week’s Dealcast.

by Avery Koop and Thiago Barrozo