Shift4 Payments in Acquisition Spotlight, Fiserv and Amadeus Poised for Billion-Dollar Bidding War

Fiserv, Inc FI and Amadeus IT Group are in the race to acquire Shift4 Payments Inc FOUR, a payment processing firm valued at nearly $7 billion. 

These two leading contenders are preparing their final bids in the upcoming weeks, although the outcome of these negotiations remains uncertain, Reuters reports. 

This week, Shift4 Payments reported fourth-quarter fiscal 2023 gross revenue growth of 31% year-on-year to $705.4 million, lagging the consensus of $$757.8 million. Adjusted EPS of 76 cents missed the consensus of 82 cents.

Also Read: Shift4 Payments: Analysts Highlight Growth Opportunities Despite Q4 Challenges

Shift4 Payments processes over $200 billion in transactions annually for more than 200,000 clients. 

The interest in Shift4 Payments indicates the broader trend in the financial services sector, where companies have sought to expand their capabilities through strategic acquisitions. 

Fiserv, a major player in providing transaction processing services with a market capitalization of about $89 billion, previously acquired First Data for $22 billion in 2019. 

On the other hand, Amadeus, a Spain-based technology provider for the travel industry valued at approximately 27 billion euros, looks to enhance its travel booking solutions with a potential Shift4 acquisition.

The pursuit of Shift4 Payments came when the payment processing industry faced challenges maintaining growth due to increased competition and economic pressures. 

However, Shift4’s recent earnings report and optimistic outlook for 2024 suggest resilience and potential for further expansion. CEO Jared Isaacman has openly discussed the company’s consideration of strategic alternatives.

Tidal ETF Trust Aztlan Global Stock Selection DM SMID ETF AZTD, which has close to 4% exposure to Shift4 Payments, gained 2.4% in the last six months.

Price Action: FOUR shares traded higher by 2.44% at $88.00 premarket on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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