Bloomberg — DLocal Ltd. (DLO), a provider of payments services to businesses in emerging markets, is exploring options including a potential sale, according to people familiar with the matter. The Montevideo, Uruguay-based company, which is working with a financial adviser, has been talking with potential buyers, said the people, who asked to not be identified because the matter isn’t public. The company has received takeover interest, they said.
No final decision has been made and DLocal could opt to remain independent, the people added.
DLocal, which trades in the US, rose 9.1% to $13.83 at 3:38 p.m. in New York on Monday, giving it a market value of about $4.1 billion.
A representative for DLocal declined to comment.
The payments industry has been consolidating for years as consumers increasingly move away from using cash. Last month, GTCR agreed to buy a majority stake in Fidelity National Information Services Inc.’s card-payments arm WorldPay in a deal valuing the business at $18.5 billion.
DLocal, which went public in 2021, provides payment services across 40 countries, with a particularly strong presence in Brazil, Mexico, Argentina, and Chile, according to its annual report. Growth equity firm General Atlantic owned about 21% of DLocal’s common shares as of March 31.
DLocal’s stock fell earlier this year on a report in the local newspaper Infobae that Argentine authorities were investigating the company for allegedly breaching capital controls. DLocal described that report as factually incorrect.
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