Shift4 Payments Secures Approval for $525M Acquisition of Finaro

Published 4 months ago

Shift4 Payments, a major payment processing firm, has gained final approval to acquire Finaro, an Israeli-based payment service provider. This green light concludes a pursuit that has stretched for almost 20 months since the announcement of the deal on March 1st, 2020.

Final Regulatory Approval Achieved

The company has confirmed that it has received the necessary regulatory approval to proceed with the transaction. According to a regulatory filing made public recently, the management plans to finalize the deal within the next three business days.

Shift4 also took the opportunity to reiterate its positive outlook for FY23 in the announcement. The company stated that it anticipates full-year results to be within the previously set ranges.

A Positive Move for Shift4 Payments

Analysts from Berenberg Capital Markets see this development as a significant milestone for Shift4 Payments. They believe that the acquisition will offer the company a solid base to expand its international ambitions.

The analysts underscore that many of Shift4’s over 200,000 customers operate on a multinational level. Therefore, the integration of Finaro into Shift4’s operations could potentially present immediate opportunities.

Analysts Maintain Positive Tone

Berenberg Capital Markets analysts maintain an optimistic stance on the company’s guidance. They noted that while some investors questioned whether Shift4 would need to adjust its full-year guidance, this recent update quashes those concerns.

The analysts reiterated a Buy rating on Shift4 Payments, with a price target of $87 on the shares. This suggests a potential upside of over 65% from the closing price of $52.31 on the previous day.

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