London global payments processor SumUp acquired Silicon Valley marketing automation platform Fivestars for $317 million in a mix of cash and stock, according to a press release on Thursday (Oct. 14). The acquisition of Fivestars is SumUp’s first in the U.S.
Fivestars is the biggest two-sided local commerce network in the U.S. and integrates an automated marketing platform, vertically integrated payments and loyalty. The combined entity with SumUp will bring small businesses worldwide payments and marketing automation services. Victor Ho, who co-founded Fivestars in 2011 and serves as CEO, will continue in his role, along with his San Francisco team.
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“We founded Fivestars to give small businesses the opportunity to thrive in the digital economy, and over the years we’ve achieved just that. Understanding that SumUp shares this mission, it was an easy decision to partner, and together, we look forward to supporting a retail market that champions small business success,” Ho said.
The acquisition gives SumUp access to Fivestars’ 70 million consumer members and 12,000 small businesses, which drives $3 billion in sales and 100 million transactions annually.
SumUp has a workforce totaling 2,800 people on three continents and raised €750 million in March. Launched in 2012, the company supports over three million merchant users in 34 markets.
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“SumUp is a market leader because of our support for, and belief in, small businesses. Our global community of merchants has battled through lockdowns and volatility, and we’re confident that this acquisition will further energize the U.S.’s recovering small business economy,” said Marc-Alexander Christ, SumUp co-founder.
“Now is the time to make sure our presence is as strong in the U.S. as it is in Europe and, by acquiring Fivestars, SumUp will deliver for U.S.-based merchants as it has in other international markets,” he added.
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