Yesterday's report in Bloomberg News indicated that Global Payments (NYSE:GPN) is exploring the possibility of acquiring Shift4 Payments Inc (NYSE:FOUR).
Shift4 Payments ended the day 4.7% higher, while Global Payments shares closed 2.7% lower.
However, Global Payments told Bloomberg News that it is not in talks with Shift4 Payments on any transaction.
“We are not in discussions with Shift4 regarding any type of strategic transaction,” the spokesperson said.
Companies like Global Payments and Shift4 are crucial in the digital economy, facilitating secure transactions between merchants, consumers, and banks in exchange for a fee. Their services became particularly vital during the online shopping surge triggered by the COVID-19 pandemic.
However, in the increasingly competitive market, there's a growing push for such firms to consolidate.
"While the deal certainly could make sense on paper, we think FOUR's board is likely to see the best near- to medium-term path forward for the company as a standalone business, given the early innings of its international expansion and momentum in its Stadium, Restaurant, and Hotel verticals," analysts at BTIG said.
However, they also reminded investors that FOUR CEO Jared Isaacman said in his 3Q23 shareholder letter that the company is "actively exploring strategic opportunities & alternatives that will reduce distractions and serve our company, employees and shareholders best."