Investing.com — DLocal Ltd Stocks (NASDAQ:DLO) rose 4% after CEO Pedro Arnt’s interview in which he discussed the company’s potential acquisition plans and clarified that DLocal is not considering a sale. The interview, first reported by Bloomberg News, provided insight into the strategic direction of the Uruguay-based payments provider, which is considering buying a smaller fintech rival to improve its product offering and market share, particularly outside of Latin America.
Arnt highlighted the current favorable market conditions for acquisitions, given the challenging funding environment for fintech. He suggested that DLocal is now more likely to make a strategic purchase than in the past. However, he did not confirm whether the company is currently in talks to buy any specific company.
The CEO also addressed past takeover proposals for DLocal, stating that while he was approached last year, the company is not for sale. His remarks come amid a backdrop of consolidation in the global payments industry, driven by a shift from cash to digital payments and an increase in transaction volumes.
Arnt remains optimistic about the payments industry in emerging markets and believes DLocal can return to a valuation of more than $20 billion if it maintains its leadership position. The company plans to invest in new products, digital infrastructure and software engineering talent to support payments volume growth over the next decade, with the goal of increasing margins.
In addition to the acquisition plans, Arnt touched on DLocal’s decision to continue holding Argentine government bonds on its balance sheet, Argentina’s attractiveness to global e-commerce companies due to new cross-border buying rules and the potential acceleration of Chinese e-commerce. commercial clients in emerging markets. He emphasized the importance of cooperation with companies that minimize regulatory resistance from European and American regulators.
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