Shift4 Payments announces preferred stock offering

CENTER VALLEY, Pa. - Shift4 Payments, Inc. (NYSE: FOUR), a provider of integrated payment processing solutions with a market capitalization of $8 billion and impressive 30% revenue growth, has initiated an underwritten public offering of 7,500,000 shares of its Series A Mandatory Convertible Preferred Stock, the company announced today. According to InvestingPro analysis, the company’s stock is currently trading below its Fair Value, having delivered a robust 55% return over the past year. In conjunction with the offering, the company may also issue up to an additional 1,125,000 shares to cover over-allotments.

The offering is part of Shift4’s financing strategy to acquire Global Blue Group Holding AG, a transaction previously disclosed by the company. With a "GREAT" Financial Health Score from InvestingPro, the company appears well-positioned to execute this strategic move. InvestingPro’s comprehensive acquisition analysis tools and Pro Research Reports offer deeper insights into such strategic moves across 1,400+ US stocks. The preferred stock has a par value of $0.0001 per share and a liquidation preference of $100.00 per share. It is set to automatically convert into Class A common stock on or about May 1, 2028, unless certain conditions prompt earlier redemption.

The net proceeds from the offering, along with potential new debt financing of up to $1,735.0 million and available cash, are intended for the payment of the merger’s cash consideration, as well as for general corporate purposes which may include debt repayment, strategic acquisitions, and growth initiatives.

Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., and several other financial institutions are serving as joint book-running managers for the offering.

The terms of the Mandatory Convertible Preferred Stock, including the dividend rate and conversion terms, will be finalized at the time of the offering’s pricing and are subject to market conditions. The offering’s completion is independent of the merger’s conclusion, which is anticipated to occur after the offering is finalized.

Shift4 Payments has filed a registration statement with the Securities and Exchange Commission (SEC), which has become effective, and the offering will be made available through a preliminary prospectus supplement and accompanying prospectus.

This press release, based on a press release statement, does not constitute an offer to sell or a solicitation of an offer to buy any securities, and the sale of these securities will not occur in any jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of any such jurisdiction. For investors seeking detailed analysis of Shift4’s financial position and growth prospects, InvestingPro offers exclusive access to 12 additional ProTips and comprehensive financial metrics that can help inform investment decisions.

In other recent news, Shift4 Payments reported impressive financial results for the first quarter of 2025, with earnings per share reaching $1.07, significantly surpassing the forecast of $0.76. The company also reported revenue of $368.5 million, exceeding expectations of $364.37 million. Additionally, Shift4 Payments raised its full-year guidance for revenue and EBITDA, reflecting confidence in continued expansion and successful execution of strategic initiatives. In a separate development, Benchmark analysts upgraded Shift4 Payments’ stock from a "Hold" to a "Buy" status, setting a new price target of $111.00. The analysts expressed confidence in the resilience of Shift4 Payments’ platform, suggesting that the stock has the potential to sustain its growth. Furthermore, the company highlighted new product innovations and strategic partnerships as key drivers of its robust growth. Shift4 Payments also demonstrated a 35% year-over-year increase in volumes to $45 billion, with adjusted EBITDA rising by 38% to $169 million. These developments indicate a strong market position and effective execution of the company’s growth strategy.

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