Payments processor Shift4 has agreed to buy travel and retail-focused financial technology platform Global Blue in a deal valued at $2.5 billion, the companies said on Tuesday.
The acquisition will give Shift4 access to Global Blue’s tax-free shopping and payments technology and help it solidify its foothold across Europe, Asia and South America.
Payments firms have been looking to broaden their global reach, as cross-border shopping becomes more popular.
The deal could also mark one of the final strategic moves under Shift4 CEO Jared Isaacman, who has been picked by President-elect Donald Trump to lead NASA.
Last year, Reuters reported that Shift4 was fielding acquisition interest. Since then, its market value has grown by more than $4 billion.
Shift4 is offering $7.50 per share for the company, which marks a 15% premium to Global Blue’s last closing price.
Global Blue shares climbed nearly 18% after the close, while Shift4’s stock fell 9%.
Shift4 said Ant International and Tencent, two existing Global Blue investors, intend to remain shareholders in the combined business.
Goldman Sachs advised Shift4 while J.P. Morgan Securities was the lead financial adviser to Global Blue. Deutsche Bank Securities, IFBC, Oppenheimer, PJT Partners and UBS also advised Global Blue, the companies said.
Source: Reuters.com