Shift4 Payments stock in exclusive talks to acquire Worldline’s North American units

Investing.com - Shift4 Payments (NYSE:FOUR), a payment processing company with a market capitalization of $6.73 billion and impressive revenue growth of 24% over the last twelve months, has entered into exclusive negotiations to acquire Worldline’s North American subsidiaries, including Bambora North America and affiliates.

The potential acquisition would bring over 140,000 merchants across the United States and Canada under Shift4’s payment processing umbrella, according to a company announcement made Wednesday.

Financial terms of the transaction were not disclosed in the announcement, though management had previously indicated that acquisitions planned for 2025 and 2026 would likely be smaller deals with purchase prices under $200 million.

DA Davidson maintained its Buy rating on Shift4 Payments with a price target of $124.00 following the news.

Bambora North America represents Worldline’s payment processing operations in the North American market, offering merchant services across the United States and Canada.

In other recent news, Shift4 Payments has entered into exclusive negotiations to acquire Worldline’s North American subsidiaries, including several Bambora entities. This potential acquisition would expand Shift4’s reach to over 140,000 merchants across the United States and Canada. In parallel developments, Goldman Sachs reiterated its Buy rating for Shift4 Payments, maintaining a $95.00 price target, following the company’s announcement about the acquisition talks. Meanwhile, Raymond James adjusted its price target for Shift4 Payments to $120 from $126, citing anticipated weakness in Global Blue and reducing third-quarter revenue and adjusted EBITDA estimates by approximately 1.5% and 2.0%, respectively.

Mizuho also lowered its price target for Shift4 Payments to $100.00 from $107.00, maintaining an Outperform rating. This adjustment reflects international challenges, especially in Japan, where the company faces tough comparisons due to last year’s record-low yen. On the other hand, Worldline reported third-quarter revenue of €1.149 billion, a slight decrease of 0.8% compared to the previous year, and announced plans to divest its North American business. The Merchant Services segment showed stabilization, declining only 0.1%, while Financial Services fell by 4.5%, and Mobility & e-Transactional Services grew by 0.7%.

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