Shares of Shift4 popped Wednesday on a report that Fiserv and Amadeus IT Group are competing to acquire the payments company. Shift4 management had said in November that the company had started a strategic review for FOUR stock.
According to Reuters, Fiserv and Amadeus are the two main contenders in a sale process that Shift4 has been running. They are preparing to submit final offers in the coming weeks, the report said.
Shift4 competes with Clover, owned by Fiserv, as well as Block's Square and Toast.
On the stock market today, FOUR stock popped 10.8% to 85.14 in afternoon trading.
CEO Isaacman Key To Deal
No deal with Fiserv or Amadeus is likely to be agreed upon without a green light from Shift4 Chief Executive Jared Isaacman. Isaacman controls more than 80% of Shift4's voting power and roughly a third of the company.
Shift4 went public in June 2020. Analysts have speculated from time to time about Isaacman taking the company private.
Global Payments in late 2023 denied it was in talks to acquire Shift4, also known as Shift4 Payments.
Allentown, Pa.-based Shift4 gets most of its revenue from customers in the hotel and restaurant industries as well as casinos. Aside from the hotel and restaurant industries, Shift4 has expanded into sports stadiums, airlines and charitable giving as well as food and beverage companies.
FOUR Stock: Fourth-Quarter Earnings Mixed
On Tuesday, Shift4 said fourth-quarter earnings per share rose 49% to 76 cents while revenue climbed 31% to $705.4 million. Net revenue rose 35% to $269 million, missing estimates of $280.4 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 31% to $136 million, missing estimates of $137 million.
For fiscal 2024, the company forecast EBITDA of $655 million, in line with estimates.
In 2023, Shift4 acquired Europe-based Finaro.
Meanwhile, FOUR stock has gained 14% in 2024. Shift4 stock has advanced 32% over the past year.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
