Fiserv and Amadeus IT Group Compete to Acquire Shift4 Payments: Report
By: Jared Kirui
Fiserv and Amadeus IT Group are competing to acquire Shift4 Payments, a payments processor valued at nearly $7 billion. According to a report by Reuters, both Fiserv and Amadeus have begun preparations to submit final offers in the coming weeks.
The successful bidder will receive a subsidy. Shift4 has a large network of contacts and a strong market presence. The company serves a diverse clientele, including restaurants, casinos and hotels, as well as the San Francisco 49ers sports team. Shift4 processes over $200 billion worth of transactions annually, serving more than 200,000 customers.
Is Shift4 Payments a lucrative acquisition target?
Despite facing significant challenges due to the COVID-19 pandemic, Shift4 Payments is experiencing increasing adoption of digital payments, driving growth. The landscape is changing, and the competition is intense as players strive to maintain momentum in the face of increasing competition and inflationary forces.
Shift4’s positive outlook for 2024 has increased its attractiveness as an acquisition target. CEO Ja Isaacman has also indicated that the company is exploring strategic alternatives and opportunities, fueling speculation.
Shift4 is not disclosing the exact details of the potential purchase, but several companies are reportedly interested. The potential acquisition of Shift4 Payments highlights the consolidation trend in the financial services sector.
Consolidation in the Financial Sector
Fiserv previously acquired First Data, and the potential acquisition of Shift4 for $22 billion could solidify its position as a major player in the payments processing space. The company’s financial forecasts were increased last year following a 108% increase in earnings per share, with revenue rising 8% year over year to $4.87 billion. This growth is driven by the company’s segments, including a 12% increase in the adoption segment and a 4-5% increase in the fintech sector. Fiserv also revised its revenue forecast for 2023, expecting an 11% increase along with a 15-16% improvement in adjusted earnings per share.
