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March 2, 2022

Shift4 bolsters payment and crypto capabilities with double deal

Shift4 has agreed to buy cross-border e-commerce payments provider Finaro and The Giving Block, which focuses on cryptocurrency fundraising for nonprofits.

Finaro is being purchased for $575m. The Giving Block deal includes a $54m upfront payment in cash and stock, along with a potential earnout of up to $246m.

The acquisitions are said to help the firm expand across a number of markets, including in e-commerce, restaurants, stadiums, gaming, specialty retail, hospitality, charitable giving, and add cryptocurrency capability.

Shift4 CEO Jared Isaacman said: “These deals clearly show our ability to support existing transformational and global customers like SpaceX Starlink & St. Jude Children’s Research Hospital and provide a real right-to-win additional customers across the nonprofit vertical.

“It also represents an exciting and responsible step towards further embracing cryptocurrencies and blockchain technology.”

The deals are expected to result in more than $15bn of end-to-end payment volume and $35m of adjusted EBITDA next year.

Finaro

The acquisition of Finaro will bring global infrastructure and technology required for Shift4 to provide ‘unified commerce experience’ for its customers.

It will also expand the firm’s existing services globally, including its Shift4Shop eCommerce platform, SkyTab POS solution, and VenueNext stadium offering.

Shift4 has over 425 software integrations and more than 200,000 merchant customers.

The company noted that many of these merchants have a multinational presence and would offer ‘immediate international opportunities’ for the firm following the acquisition of Finaro.

The Giving Block

The Giving Block operates a crypto donation marketplace that connects cryptocurrency donors with more than 1,300 nonprofit organisations.

Following the acquisition, Shift4 intends to take advantage of an embedded cross-sell opportunity, worth more than $45bn, by combining crypto donation capabilities with traditional card acceptance.

Additionally, the firm plans to further invest in The Giving Block’s strategy.

The Giving Block acquisition also brings cryptocurrency and blockchain technical talent to Shift4.

The firm plans to set up a Crypto Innovation Center and integrate crypto acceptance and settlement capabilities across its offerings in a range of verticals.

Isaacman said: Cryptocurrency is quickly moving beyond early adoption and becoming increasingly mainstream as more people want to invest, transact and donate in crypto.

“We intend to be at the forefront of this movement and leverage The Giving Block technology across the entire Shift4 enterprise.” Last year, Shift4 expanded its presence and capabilities in verticals such as sports stadiums, entertainment venues, and theme parks with the takeover of VenueNext.

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