SAO PAULO, June 18 (Reuters) - Brazilian software

company Totvs SA is eyeing targets for acquisitions

this year beyond StoneCo's ( STNE ) Linx unit, Chief Executive

Dennis Herszkowicz said in an interview, adding the company will

not need to sell assets to finance deals.

Totvs has shown interest in Linx since 2020, when StoneCo ( STNE )

won a bidding war by paying 6.7 billion reais ($1.22 billion)

for the retail software developer. In April, Totvs entered

exclusive negotiations with StoneCo ( STNE ) to acquire the unit.

Herszkowicz said those talks were ongoing and an acquisition

would be beneficial, given Linx's leading position in providing

software for Brazilian retailers. But he said closing the deal

was not essential for the company's growth.

"Totvs is very broad. And our portfolio is very wide. There

isn't one acquisition that solves everything we want to solve,"

Herszkowicz told Reuters in a Tuesday interview.

He said accelerating trends in artificial intelligence,

cloud computing and other digital technology had created several

opportunities where acquisitions offered effective shortcuts.

Totvs is present in several Latin American countries, but

the company is focused on deals in Brazil, which represents the

"overwhelming majority" of its business, the CEO said.

Herszkowicz declined to give details on the timing or

transaction values under negotiation for Linx or other assets.

He said Totvs had not hired an advisor to sell its stake in

financial technology firm Dimensa, a joint venture with Brazil

exchange operator B3, again denying a local media

report.

Any acquisitions by Totvs this year will not rely on capital

from divestitures, which the company doesn't need to finance

deals, according to Herszkowicz.

"Like any company, at any moment, we always have the

possibility to evaluate anything. Now, there's nothing (related

to Dimensa) effectively happening at this moment," he said.

($1 = 5.49 reais)