What happened
Shares of StoneCo Ltd. (STNE -0.20%) were up today after the company raised its bid to buy Brazilian software company Linx S.A. (LINX). StoneCo's stock was up by as much as 5.6% today.
As of 3:46 p.m. EDT, StoneCo's stock had gained 3.2%.
So what
StoneCo entered into an agreement last month to buy Linx for R$6.04 billion (about $1.12 billion). Today, StoneCo updated the terms of the purchase, saying that it would now buy the company for R$35.10 (about $6.52) per Linx share.
Image source: Getty Images.
StoneCo said that each Linx share would now be worth R$31.56 plus 0.0126774 Stone Class A common shares. Additionally, StoneCo lowered the maximum breakup fee for the deal to R$453.75 million, down from the previous R$605 million, in the case that a Brazillian antitrust authority doesn't approve the deal. If Linx shareholders don't approve the deal, then Linx has to pay $R112.5 million.
StoneCo updated the terms of the deal as it fended off a rival bid from Totvs SA.
Now what
Shares of StoneCo have been erratic since the company announced its initial bid for Linx on Aug. 11. The company's stock price popped 11% after the deal was initially announced, but its shares have lost some ground since then and are up just 1% since that announcement.
