DLocal, a unicorn and leading payment service provider catering to businesses in emerging markets, is considering strategic options, including a potential sale, as revealed by sources speaking to Bloomberg News.
Headquartered in Montevideo, Uruguay, DLocal is collaborating with a financial advisor and has engaged in discussions with interested buyers, the insiders mentioned.
They opted to remain anonymous due to the confidential nature of the discussions.
The firm has reportedly attracted acquisition interest, but no final decisions have been made, and DLocal might decide to maintain its independence.
On the back of this news, DLocal’s US-listed shares saw a 7.81% increase, closing at US$13.67, positioning the company’s market value at approximately US$4.01 billion.
DLocal refrained from commenting on the matter.
There’s been an ongoing trend towards consolidation in the payment sector, with a shift as consumers increasingly move away from cash transactions.
In a recent development, GTCR agreed to acquire a significant stake in Fidelity National Information Services’ card payment division, WorldPay, in a deal valuing the business at US$18.5 billion.
Having gone public in 2021, DLocal offers payment services across 40 nations, marking a dominant presence in Brazil, Mexico, Argentina, and Chile, as highlighted in their annual report.
Investment firm General Atlantic held about 21% of DLocal’s ordinary shares as of March 31st.
Earlier this year, DLocal’s stock faced challenges when local news outlet Infobae claimed Argentine authorities were probing the firm for potential capital control violations.
However, DLocal countered that the report was factually inaccurate.