Shift4 Payments fell sharply Monday on a report that CEO Jared Isaacman told staff that potential bids have been rejected because they didn't "sufficiently value" the payments firm.
The specialty payments firm got "multiple offers" above its current stock price but not high enough to satisfy Shift4's board, Isaacman told staff Friday in a memo seen by Bloomberg News.
Shift4 Stock Falls
FOUR stock plunged below the 50-day moving average Monday, skidding to as low as 69.77. Shares pared losses, closing down 6.7% at 72.33.
Global Payments in late 2023 denied it was in talks to acquire Shift4.
Shares jumped 12% on Feb. 28 after Reuters reported that rivals Fiserv and Amadeus IT were suitors. Shift 4 stock hit a two-high of 92.30 on Feb. 29 but reversed lower as Amadeus said that it wasn't interested. Fiserv said last Thursday that most of its takeovers are of "moderate size."
Late last year in a letter to shareholders, Isaacman said Shift4 was "actively exploring strategic opportunities and alternatives."
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.
Isaacman Voting Power
Further, Shift4 went public in June 2020. Isaacman controls more than 80% of Shift4's voting power and roughly a third of the company.
Allentown, Pa.-based Shift4 competes with Clover, owned by Fiserv, as well as Block's Square and Toast.
In 2023, Shift4 acquired Europe-based Finaro.
As of March 15, Shift4 stock had advanced 4% in 2024.
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