Shift4 Payments is an Acquisition Target! | FOUR Stock
What’s Up, Everybody! MR. ZERO to INFINITY is back for Episode 69! Shift4 Payments is an Acquisition Target! | FOUR Stock | Add on Instagram: MrZEROtoINFINITY
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Shift4 Payments is an Acquisition Target! | FOUR Stock
There’s been big news about my top Stock position in my Zero to Infinity stock portfolio, Shift4 Payments. It’s been rumored that 2 big companies Fiserv and Amadeus IT Group are competing in a bidding war to acquire Shift4 Payments. Fiserv and Amadeus are the two main contenders in a sale process that Shift4 has been running, and are preparing to submit final offers in the coming weeks, the sources said, cautioning a deal is not certain.
Shares of Shift4 jumped over 10% plus on the news.
This news shouldn’t be that surprising since CEO Jared Isaacman said in a letter to shareholders back in November that Shift4 was exploring "strategic opportunities and alternatives."
Back in December, a rumor surfaced that Global Payments was considering an acquisition of Shift4, but a Global Payments spokesperson denied the report.
Fiserv has a market capitalization of about $88 billion. It provides technology services to banks, merchants, and other companies to help them process transactions.
Amadeus has a market value of about $27 billion. It’s a technology provider focused on travel software systems and counts airlines, railways, business travel agencies and tour operators among its customers.
It seems Amadeus is already out of the acquisition talks making the following statement: ”We are aware of rumors regarding Amadeus and Shift4. Amadeus is not interested in this transaction.”
Regardless, this acquisition news is just a rumor at this time. If an acquisition does happen, you’d expect shareholders to get a nice premium on the stock price. I’ve seen price targets anywhere from $120-$138 per share, but this range is just an estimated guess.
Since Shift4 Payments is my number one position in my Zero to Infinity stock portfolio I’m pleased to see the stock price hit all time highs.
Shift4 payments recently reported Q4 2023 earnings so for the rest of this episode I’ll go over a few of my notes and discuss what I’m doing with my Shift4 Payments shares in my portfolio knowing Shift4 is a possible acquisition target.
Management has stated Shift4 payment’s growth algorithm is very straightforward. It comes down to two things: land and expand and add new merchants.
Management has stated that the SkyTab 2024 install goal is 30,000 restaurants domestically and 10,000 restaurants and hotels in Canada & Europe.
In the sports and entertainment vertical, Shift4 has made tremendous strides integrating Appetize and management has stated they are executing well on converting the 600 plus legacy Appetize customers onto the VenueNext platform.
As a reminder, management raised capital when the market supported Shift4 to do so attractively. Shift4’s weighted average cost of debt is currently 1.35% and there are no maturities until December 2025. The CFO wanted to reiterate that Shift4’s balance sheet, cash generation and profitable growth position sets Shift4 up incredibly well for the current environment of macro uncertainty.
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