London’s global payments provider SumUp has successfully completed the acquisition of Fivestars, a US-based startup that delivers vertically integrated payments, loyalty programmes, and a marketing automation platform. The translation amount totals $317 million in a mix of cash and stock.
Just over half a year ago, SumUp brought home a whopping €750 million wherein they specifically noted that this funding would be used towards the acquisition of new clients, whether that be organically or via further strategic M&A’s. Acquisitions, as we know all too well at Tech.eu, don’t happen overnight, and most presumably, the Fivestars deal was already afoot.
The acquisition of a service that goes heavy on the “Local Business” copy isn’t an accident for SumUp, as merchants across the globe are looking to re-enter the new world with a handful of new technologies. Over the course of the pandemic, Fivestars reports that they became an indispensable lifeline for the 12,000+ small businesses they support. With the acquisition, SumUp now gains access to the $3 billion in sales and over 100 million transactions per year Fivestar is responsible for driving.
As is often the industry standard, Fivestars’ CEO and co-founder Victor Ho will remain in his role, as will the entire San Francisco-based team.
“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,” stated Ho.