📰 DLocal Explores Sale Amid Industry Consolidation
Uruguayan payments provider weighs options as private equity and fintech giants circle.
DLocal DLO 0.00%↑ a leading payments provider in Latin America with a market value of $3.6 billion, is considering a sale, according to sources familiar with the matter. The Montevideo-based company has enlisted Morgan Stanley to assess interest from private equity firms and fintech companies.
DLocal’s largest shareholder, General Atlantic, supports the exploration of strategic options. However, a deal is not guaranteed, insiders cautioned. Shares of DLocal surged 14% on the news, reflecting investor anticipation, though some gains later receded.
This isn’t the first time DLocal has explored a sale. A previous attempt faltered due to disagreements over financial terms. The company continues to face challenges, including weaker emerging-market currencies and increased competition in digital payments.
The payments sector has seen heightened consolidation amid slowing growth post-pandemic. Notable deals include Advent International’s $6.3 billion acquisition of Nuvei and Lightspeed Commerce's ongoing sale exploration.
DLocal operates in Latin America, Africa, and Asia, with high-profile clients such as Amazon, Microsoft, and Google. Despite market headwinds, the company reported a 5% rise in gross profit in its most recent quarter.
With industry valuations falling, DLocal’s future may hinge on its ability to navigate these headwinds and capitalize on growing takeover interest.
Source: Reuters, The Paypers
Disclaimer:
The information and opinions provided in this article are for informational and educational purposes only and should not be considered as investment advice or a recommendation to buy, sell, or hold any financial product, security, or asset. The Future Investors does not provide personalized investment advice and is not a licensed financial advisor. Always do your own research before making any investment decisions and consult with a qualified financial professional before making any investment decisions. Please consult the general disclaimer for more details.