Fee firm SumUp makes a $ 317 million acquisition to increase in the USA
A buyer makes use of a SumUp fee card reader in Lisbon, Portugal on September 13, 2019.
Angel Garcia | Bloomberg through Getty Photos
LONDON – SumUp, a UK-based fee processor, has acquired advertising startup Fivestars to increase its attain within the US to tackle giants like PayPal and Sq..
The corporate introduced Thursday that it was shopping for Fivestars for $ 317 million in a mixture of money and shares. Fivestars, headquartered in San Francisco, helps retailers arrange rewards applications and promotions for purchasers. The deal offers SumUp entry to Fivestar’s 12,000 prospects and generates annual gross sales of $ 3 billion.
Based in 2012, SumUp is finest identified for its cell bank card readers that enable small companies to simply accept funds. The corporate additionally affords different fee instruments, together with the flexibility for retailers to arrange their very own on-line shops. It has registered over 3 million sellers in Europe, the US and Latin America.
SumUp competes with Sweden’s iZettle, which was acquired by PayPal in 2018, in addition to Jack Dorsey’s Sq.. Because the start-up plans to increase within the US, the rivalry with these massive gamers will intensify. Nevertheless, SumUp believes there’s sufficient room for numerous completely different firms to coexist.
“I’d say that we actually deal with the smallest retailers and we set ourselves aside,” Andrew Helms, US managing director at SumUp, instructed CNBC. “We do not need to get into firms, we’re not going any additional upstream.”
Helms stated the U.S. market noticed a shift in spending sample throughout the coronavirus pandemic, with fee choices equivalent to non-physical transactions, invoicing and fee hyperlinks seeing accelerated progress.
“Nevertheless, we’re doubtless underestimating the shift again to outlets and stationary services,” as Covid restrictions are lifted and folks meet once more in particular person, he added.
Previous to the cope with SumUp, Fivestars had raised a complete of $ 115 million, in response to Crunchbase, and acquired assist from buyers equivalent to Lightspeed Enterprise Companions and Menlo Ventures.
SumUp has raised a complete of $ 1.4 billion in fairness and debt financing since its inception. The corporate was supported by Goldman Sachs, Singapore-based Temasek, and Bain Capital.