© Reuters. Shift4 Payments surges on news of potential acquisition by Global Payments
Global Payments (NYSE:) is exploring the possibility of acquiring Shift4 Payments (FOUR), according to a Bloomberg report, citing sources familiar with the matter. Following the news, Shift4 Payments shares gained more than 4% today and are currently trading 3% higher after-hours, while Global Payments shares closed with more than a 2% loss today.
The Atlanta-based company has engaged an advisor to assess the potential of a deal with Shift4, said the sources. While talks are in progress, there’s no guarantee that these will lead to a definitive agreement. Requests for comments from both Global Payments and Shift4 have not been immediately answered.
Companies like Global Payments and Shift4 are crucial in the digital economy, facilitating secure transactions between merchants, consumers, and banks in exchange for a fee. Their services became particularly vital during the online shopping surge triggered by the COVID-19 pandemic. However, in the increasingly competitive market, there’s a growing push for such firms to consolidate.
Shift4, which processes over $200 billion in payments annually, operates across North America, Europe, and Asia. Its clientele spans diverse sectors, including airlines, travel, casinos, and gaming. Founded in 1999, Shift4 went public in 2020.