Aug 11 (Reuters) - Retail software company Linx SA said on Tuesday it is in final talks for a merger with card processor StoneCo Ltd through its Brazilian unit.

Brazil-based Linx said in a statement there was no certainty that a deal would be reached.

Linx swung to a quarterly loss in June, citing the impact of the COVID-19 pandemic on its business, while StoneCo has predicted worsening profit margins in the second quarter, a period that marked the strongest effects of the outbreak.

(Reporting by Noor Zainab Hussain in Bengaluru; Edited by Krishna Chandra Eluri)