Payments Firm SumUp Acquires Fivestars for US$317 Million18 October 2021
SumUp, a London-based global payments service provider, announced the acquisition of Fivestars, America’s commerce network that combines a marketing platform with integrated payments, for US$317 million in a mix of cash and stock.
The acquisition will enable both companies to offer essential payments and marketing automation services to small business owners across the U.S. and globally.
Fivestars’ San-Francisco-based team, including its CEO and co-founder, Victor Ho, will remain in their roles and continue to operate the firm.
The deal is SumUp’s first acquisition in the U.S. and will provide the company with access to the more than 70 million consumer members and 12,000 small businesses within Fivestars’s network, which currently drives over US$3 billion in sales and 100 million transactions per year.
Following a €750 million raise in March 2021, SumUp has reportedly grown to support over three million merchant users in 34 markets.
Marc-Alexander Christ, Co-founder of SumUp said,
“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.
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,”
Victor Ho, Co-founder and CEO, Fivestars said,
“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.”
This article first appeared on Fintech News Switzerland.
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