Report: Shift4 CEO Says Bids From Buyers Fall Short

Shift4 Payments’ CEO is reportedly unhappy with the offers from potential buyers for his firm.

Chief Executive Jared Isaacman said those bids failed to “sufficiently value” the payments processor, Bloomberg News reported Sunday (March 17), citing an eternal memo.

According to the report, the memo said the Pennsylvania-based Shift4  received “multiple offers” above its share price but its board of directors concluded that none properly valued the business or its potential.

The Bloomberg report noted Isaacman wrote to shareholders last year to let them know Shift4 was “actively exploring strategic opportunities and alternatives that will reduce distractions and serve our company, employees and shareholders best.”

PYMNTS has contacted Shift4 for comment but has not yet gotten a reply.

The news comes week after reports that Fiserv and Amadeus IT Group were competing to acquire Shift4, which is valued at nearly $7 billion, and has been engaged in exploring a sale.

In an emailed statement to PYMNTS, an Amadeus spokesperson said the firm was  “aware of rumors regarding Amadeus and Shift4. Amadeus is not interested in this transaction.”

December brought the news that Global Payments was considering purchasing Shift4, but a Global Payments spokesperson denied the report.

The news comes as another company in the payments sector, Nuvei, is reportedly on the verge of an acquisition by private equity company Advent International. The deal, if it goes forward, would be one of the largest private equity buyouts in recent memory, as the Canada-based Nuvei has a $3 billion market capitalization.

Assuming these deals go forward, they would mark the latest in a series of transactions in the financial services industry, along with Capital One’s agreement to acquire Discover; Nasdaq’s purchase of Adenza; and GTCR’s purchase of a majority stake in Worldpay.

Meanwhile, recent research by PYMNTS Intelligence examined the things small and midsize businesses (SMBs) value when choosing a payments processor.

Foremost among these considerations are ease of use, something considered crucial by 72% of Main Street SMBs, followed by reliability at 60%, according to  “The Main Street Health Survey Q3 2023,” a PYMNTS/Enigma collaboration.

“Additionally, the cost of processing fees hold significant sway, which 52% of small businesses consider important, while 45% of small firms prioritize diversity of payment options,” PYMNTS wrote in January. “Other important factors considered include support and customer service, integration with other systems, customer preference, contract terms and security features.”