software management industry

Established in 1985, Linx S.A. is a Brazilian company that was recently merged with StoneCo over a transaction worth $1.1 billion. It is a publicly-traded company and the largest software house in Latin America in the retail management sector. The company retains approximately 40% of the retail management software in its home country. In the early 2000s, the company was consecutively featured in the Valor 1000 annual report as one of the biggest Brazilian companies. It has also made plenty of acquisitions both before and after the merger with StoneCo.

About Linx S.A.

Nércio Fernandes is a Brazilian entrepreneur who has founded Linx S.A. in 1985. Linx S.A. has established itself in the management software industry and it offers cloud-based solutions that are easy to use and affordable. It has a SaaS business model that it offers to retailers in Latin America. Like every other software company, Linx also witnessed high growth in revenue during the pandemic as only the subscription revenue accounted for R$866.6 million. Linx S.A. has also received many awards for its rapid growth and technology. In 2009, Linx became the fifth-largest company in the country in terms of sales. In 2017, the company was acknowledged by BR Week for Best Software Provider of Receipt Emission.

History

When the company was founded by Nércio Fernandes and his other partners, it was named Microserv Comércio & Consultoria Ltda. Nércio Fernandes wanted to invest in the microcomputing field and so he established this company even though he was from a civil engineering background. Initially, the company started serving small businesses in the regions of Brás and Bom Retiro in São Paulo. A few years later, Microserv created software for fashion retail management and it was called MicroMalhas. In 1990, the company’s name was changed to Linx followed by Linx ERP. During this time, the flagship product of the company focussed on several industries ‘ retail management.

In 2000, the company opened a new unit, Linx Logistica for internal logistics. The company eventually opened other divisions of Linx as the business expanded and the structure evolved. Some of the other divisions are Linx Sistemas and Linx Telecom. These segments focused on telecommunication and connectivity for retail. Linx thought a holding company will be necessary to unify the business units and hence LMI S.A. emerged in 2004 and was later renamed Linx S.A. As Linx S.A. was expanding, it moved its main office in 2011 to a commercial building in São Paulo. It also landed an investment from an American private equity firm, General Atlantic.

Merger and Acquisition

Linx acquired Quadrant Informatica Ltda in 2008. The deal was closed for R$39.9 million. In the next year, it acquired Formata Data Business for R$41.1 million followed by Intercommerce Retail Software for R$13.6 million. In 2010, Linx acquired two new companies, namely, CNP Engenharia de Sistemas S.A. and Dia System Informática Ltda for R$16 miilion and R$13.8 respectively. It also acquired Custom Business Solutions Ltda, Spress Informatica, and Microvix Software in 2011. In 2012, Linx S.A. made a deal with itix Consultoria em Tecnologia da Informação Ltda. for the transfer of its technology. The size of acquisitions got bigger as in 2014, Linx acquired a series of companies and the total transaction amount exceeded R$100 million. In 2020, Linx celebrated its 35th anniversary and acquired PinPag, Neemo, Humanas, and a few other companies.

Nércio Fernandes – Founder of Linx S.A.

Nércio Fernandes started his studies in civil engineering. But, his greater interest in the computer field led to entrepreneurship. At the age of 22, he decided to drop out of college and start his venture. His first company was Linx S.A. after which he founded a few other companies. These companies include Okean Yachts, TAQE, and Predicta. Currently, he is a Board Member of all these companies including Linx S.A.