Brazilian software developer Linx has acquired its Argentinean counterpart Synthesis for $16.3 million, making its first foray into a foreign market.
Linx will pay an additional $9.5 million over the next three years if the Argentinean firm meets certain financial and operational targets.
With annual revenue of over $7 million, Synthesis specializes in point-of-sale automation software and electronic payment solutions. It also sells technology solutions for retail chains to promote themselves.
Reports say Synthesis has considerable presence in Mexico and Argentina, and counts Liverpool, Chedraui, Costco, Grupo Carso, YPF, and Censosud among its clients.
A declining user base caused by the closure of thousands of retail stores in Brazil could have prompted Linx to expand overseas, say analysts. More than 10,000 retails stores were shuttered in the first quarter of this year alone, according to Brazil’s National Confederation of Commerce (CNC).
In a press release, Linx stated that it would expand to markets where its Brazilian clients move in.
It would take nearly a year to integrate Synthesis’ assets into its existing operations, according to a Reuters report that cites company executives.
Considering the report, Linx will soon start selling its software to retailers in Argentina and Mexico, and offer Synthesis’ software, particularly the technology platform that helps retail firms launch promotional campaigns, to its Brazilian clients.