Shift4 Acquires Majority Stake of German Point-of-Sale Company Vectron Systems AG and Completes Previously Announced Acquisition of Revel Systems
Shift4 has acquired a majority stake in Vectron Systems AG, gaining access to approximately 65,000 POS locations across Europe and a distribution network of around 300 POS resellers. This acquisition brings a €25 billion volume opportunity with minimal payment monetization currently. Shift4 plans to increase its ownership through a public tender offer soon, with a de-listing and formal integration to follow. Additionally, Shift4 completed its acquisition of Revel Systems, adding about 18,000 merchant locations and an estimated $17 billion payment opportunity. These moves are expected to significantly enhance Shift4's integrated payment services and strengthen its presence in both European and US markets.
- Acquisition of Vectron provides access to ~65,000 POS locations across Europe.
- Vectron's distribution network includes ~300 POS resellers.
- Estimated €25 billion volume opportunity with Vectron.
- Potential to increase ownership of Vectron through a public tender offer.
- Formal integration and de-listing process for Vectron expected soon.
- Completion of Revel acquisition adds 18,000 merchant locations.
- Revel acquisition represents an estimated $17 billion payment opportunity.
- Expansion and monetization of integrated payment services in Europe and the US.
- Shift4's CEO highlights demand for all-in-one solution in Europe.
- Current minimal payment monetization in Vectron's €25 billion volume.
- Potential risks associated with the public tender offer and de-listing process.
- Integration process of Vectron and Revel could face operational challenges.
- Financial implications of acquiring and integrating Vectron and Revel.
Insights
Shift4's acquisition of a majority stake in Vectron Systems AG is a significant strategic move. This deal provides Shift4 access to approximately
Additionally, the completion of the Revel Systems acquisition adds another 18,000 merchant locations with an estimated
The expansion into Europe via Vectron Systems AG is a strategic market entry for Shift4. With a well-established local POS presence in the restaurant and hospitality sectors, Vectron’s local expertise and reseller network are invaluable assets. 300 POS resellers mean a widespread distribution network that Shift4 can leverage for its integrated payment solutions. The minimal current payment monetization suggests a significant opportunity for Shift4 to introduce its integrated payment services and SkyTab offerings. The European market’s demand for an all-in-one solution could potentially lead to rapid adoption, but the success will depend on pricing strategies and the ability to deliver seamless integration and support.
Furthermore, the Revel acquisition's contribution to bolstering Shift4's presence domestically and internationally can’t be overlooked. Revel’s established distribution network and merchant base will be instrumental in accelerating SkyTab’s penetration.
Shift4 has acquired a majority stake in Vectron, which will provide Shift4 with ~65,000 POS locations across
Shift4 Acquires Majority Stake in Vectron and Completes Acquisition of Revel Systems (Graphic: Business Wire)
The acquisition is expected to provide Shift4 with an expansive customer footprint across
“Shift4 was at the forefront of the convergence between software and payments in the restaurant and hospitality verticals in the US. We see an incredible amount of demand for a similar all-in-one solution across Europe,” states Shift4 CEO Jared Isaacman. “With our integrated payments and SkyTab offering, we believe we have the best solution at the right price point. Vectron will provide valuable local expertise, infrastructure, and the distribution necessary to meet the demand. This acquisition is right out of the Shift4 playbook – enabling us to unlock synergies, expand our distribution, and monetize payments for a large existing install base.”
In addition to the acquisition of Vectron, Shift4 has also completed its previously announced acquisition of Revel Systems. Revel has over 18,000 merchant locations across
Shift4 retained Perella Weinberg as financial advisor and Gleiss-Lutz as legal advisor on the acquisition of Vectron, and Chiesa, Shahinian, and Giantomasi as legal advisor on the acquisition of Revel.
To learn more about Shift4, visit www.shift4.com. For more information regarding the Vectron acquisition, please click here or visit our website at investors.shift4.com/news-events/presentations.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Shift4 intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding our expectations associated with the acquisitions of Vectron Systems AG and Revel Systems, including the completion of the acquisitions, the benefits, synergies, efficiencies, and opportunities arising from the acquisitions, and the timing of any of the foregoing. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any futures results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to the substantial and increasingly intense competition worldwide in the financial services, payments and payment technology industries; our ability to continue to expand our share of the existing payment processing markets or expand into new markets; additional risks associated with our expansion into international operations, including compliance with and changes in foreign governmental policies, as well as exposure to foreign exchange rates; and our ability to integrate and interoperate our services and products with a variety of operating systems, software, devices, and web browsers, and the other important factors discussed under the caption “Risk Factors” in Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2023 and our other filings with the SEC. Any such forward-looking statements represent management’s expectations as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.
About Shift4
Shift4 (NYSE: FOUR) is boldly redefining commerce by simplifying complex payment ecosystems across the world. As the leader in commerce-enabling technology, Shift4 powers billions of transactions annually for hundreds of thousands of businesses in virtually every industry.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240614174804/en/
MEDIA:
Nate Hirshberg
SVP, Marketing
Shift4
nhirshberg@shift4.com
Source: Shift4
FAQ
What stake did Shift4 acquire in Vectron Systems AG?
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