Fiserv and Amadeus IT Group are competing to acquire Shift4 Payments, a payment processor with a market value of nearly $7 billion. According to a report by Reuters, both Fiserv and Amadeus are preparing to present final bids for the acquisition in the upcoming weeks.

This acquisition will grant the winning bidder access to Shift4's extensive network and market influence. The company has a diverse clientele spanning restaurants, casinos, hotels, and sports teams like the San Francisco 49ers. Shift4 processes over $200 billion of transactions annually for more than 200,000 customers.

A Lucrative Acquisition Target?

Despite the challenges posed by the COVID-19 pandemic, Shift4 Payments reportedly experienced notable growth fueled by the surge in digital payment adoption. However, the landscape remains competitive, with players grappling to sustain momentum amidst heightened competition and inflationary pressures.

Shift4's recent fourth-quarter earnings report and an optimistic outlook for 2024 have boosted its appeal as an acquisition target. Additionally, remarks from the firm's CEO, Jared Isaacman, regarding exploring strategic opportunities and alternatives have fueled speculation.

While Shift4 has not disclosed the details about the acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term, reports suggest that several companies have expressed interest in acquiring the company. The potential acquisition of Shift4 Payments underscores the ongoing trend of consolidating entities within the financial services sector.

Consolidation in the Financial Sector

For Fiserv, which previously acquired First Data for $22 billion, the acquisition of Shift4 could solidify its position as a key player in the payment processing arena. Recently, high-profile deals, including Capital One's acquisition of Discover Financial and Nasdaq's purchase of Adenza, have been concluded in the financial space.

Last year, Fiserv raised its financial projections following a surge of 108% in earnings per share (EPS). The company reported a growth of 8% in revenue, amounting to $4.87 billion compared to the previous year. The firm's segments driving this growth include an increase of 12% in the Acceptance sector and a rise of 4% and 5% in the Fintech and Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term segments, respectively.

Subsequently, the company reviewed its full-year revenue outlook for 2023 to a growth of 11%, alongside an anticipated improvement of15% to 16% in adjusted EPS.