Fiserv and Amadeus IT Group are competing to acquire
Shift4 Payments, a payments processor with a market value of nearly $7 billion.
According to a report by Reuters, both Fiserv and Amadeus are preparing to
present final bids for the acquisition in the upcoming weeks.
This acquisition will grant the winning bidder
access to Shift4’s extensive network and market influence. The company has a
diverse clientele spanning restaurants, casinos, hotels, and sports teams like
the San Francisco 49ers. Shift4 processes over $200 billion of
transactions annually for more than 200,000 customers.
Despite the
challenges posed by the COVID-19 pandemic, Shift4 Payments reportedly experienced notable
growth fueled by the surge in digital payment adoption. However, the landscape
remains competitive, with players grappling to sustain momentum amidst
heightened competition and inflationary pressures.
Shift4’s recent fourth-quarter earnings report and
an optimistic outlook for 2024 have boosted its appeal as an
acquisition target. Additionally, remarks by the firm’s CEO, Jared Isaacman,
regarding exploring strategic opportunities and alternatives have
fueled speculation.
While Shift4 has not disclosed the details about the
acquisition , reports suggest that several companies have expressed interest in
acquiring the company. The potential acquisition of Shift4 Payments underscores
the ongoing trend of consolidating entities within the financial services
sector.
Consolidation in the Financial Sector
For Fiserv, which previously acquired First Data for
$22 billion, the acquisition of Shift4 could further solidify its position as a
key player in the payment processing arena. Recently, high-profile deals, including Capital
One’s acquisition of Discover Financial and Nasdaq’s purchase of Adenza, have
been concluded in the financial space.
Last year, Fiserv raised its financial projections
following a 108% surge in earnings per share (EPS). The company reported a growth
of 8% in revenue, amounting to $4.87 billion compared to the previous year. The firm’s segments driving this growth include a
12% increase in the Acceptance sector and a 4% and 5% rise in the Fintech and
Payments segments, respectively.
Subsequently, the
company reviewed its full-year revenue outlook for 2023 to a growth of 11%,
alongside an anticipated 15% to 16% improvement in adjusted EPS.
Fiserv and Amadeus IT Group are competing to acquire
Shift4 Payments, a payments processor with a market value of nearly $7 billion.
According to a report by Reuters, both Fiserv and Amadeus are preparing to
present final bids for the acquisition in the upcoming weeks.
This acquisition will grant the winning bidder
access to Shift4’s extensive network and market influence. The company has a
diverse clientele spanning restaurants, casinos, hotels, and sports teams like
the San Francisco 49ers. Shift4 processes over $200 billion of
transactions annually for more than 200,000 customers.
Despite the
challenges posed by the COVID-19 pandemic, Shift4 Payments reportedly experienced notable
growth fueled by the surge in digital payment adoption. However, the landscape
remains competitive, with players grappling to sustain momentum amidst
heightened competition and inflationary pressures.
Shift4’s recent fourth-quarter earnings report and
an optimistic outlook for 2024 have boosted its appeal as an
acquisition target. Additionally, remarks by the firm’s CEO, Jared Isaacman,
regarding exploring strategic opportunities and alternatives have
fueled speculation.
While Shift4 has not disclosed the details about the
acquisition , reports suggest that several companies have expressed interest in
acquiring the company. The potential acquisition of Shift4 Payments underscores
the ongoing trend of consolidating entities within the financial services
sector.
Consolidation in the Financial Sector
For Fiserv, which previously acquired First Data for
$22 billion, the acquisition of Shift4 could further solidify its position as a
key player in the payment processing arena. Recently, high-profile deals, including Capital
One’s acquisition of Discover Financial and Nasdaq’s purchase of Adenza, have
been concluded in the financial space.
Last year, Fiserv raised its financial projections
following a 108% surge in earnings per share (EPS). The company reported a growth
of 8% in revenue, amounting to $4.87 billion compared to the previous year. The firm’s segments driving this growth include a
12% increase in the Acceptance sector and a 4% and 5% rise in the Fintech and
Payments segments, respectively.
Subsequently, the
company reviewed its full-year revenue outlook for 2023 to a growth of 11%,
alongside an anticipated 15% to 16% improvement in adjusted EPS.
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- Source: https://www.financemagnates.com//fintech/fiserv-and-amadeus-it-group-compete-in-bid-for-shift4-payments-acquisition-report/
