Shift4 Payments Stock Sinks On $2.5B Deal To Buy Global Blue, But Retail Bulls Aren't Fading
Synopsis
The company would use its own cash and a $1.8 billion loan facility to finance the deal, which is expected to close in the third quarter.
Shift4 Payments (FOUR) stock fell 10.7% after the bell on Tuesday after the company agreed to buy financial technology firm Global Blue in a deal valued at $2.5 billion.
The company will acquire Global Blue for $7.50 per share in cash, which implies a 15% premium to Global Blue’s closing share price as of Feb. 14.
“Integrating Global Blue into our unified payments platform positions Shift4 as a leading unified commerce payment provider around the world,” Shift4 President Taylor Lauber said.
Shift4 said Global Blue’s tax refund and currency conversion capabilities would enhance the end-to-end experience for its merchants.
The company added that Global Blue shareholders Ant International, a part of the Alibaba Group, and Tencent are exploring strategic partnerships with Shift4 and plan to remain shareholders in the combined business.
Shift4 would use its own cash and a $1.8 billion loan facility to finance the deal, the company said. The transaction is expected to close in the third quarter.
Separately, the company reported adjusted earnings of $1.35 per share for the fourth quarter, which topped Wall Street’s estimate of $1.15 per share.
The company reported end-to-end payment volumes of $47.9 billion, a 49% rise compared to the year-ago quarter.
Shift4 forecast 2025 volumes to be between $200 billion and $220 billion and projected adjusted earnings before interest, taxes, depreciation, and amortization between $830 million and $855 million.
Retail sentiment on Stocktwits moved higher in the ‘extremely bullish’ (84/100) territory than a day ago, while retail chatter remained ‘extremely high.’
Over the past year, Shift4 stock has gained 64%.
Shift4’s CEO, Jared Isaacman, has been picked by U.S. President Donald Trump to lead NASA.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.