SumUp, a London, UK-based global payments service provider with over 2,800 employees across three continents, acquired Fivestars, an American two-sided local commerce network that combines a marketing platform with integrated payments, for $317m in a mix of cash and stock.
The acquisition is SumUp’s first in the U.S. and will provide the company with access to the more than 70 million consumer members and 12,000 small businesses within Fivestars’s network, which currently drives over $3 billion in sales and 100 million transactions per year. The deal will enable both companies to offer essential payments and marketing automation services to small business owners across the U.S. and globally.
Fivestars’ San-Francisco-based team, including its CEO and co-founder, Victor Ho, will remain in their roles and continue to operate Fivestars.
Following a €750m raise in March 2021, one of the most significant debt financings for any privately backed startup in Europe, SumUp – which has grown since 2012 to support over three million merchant users in 34 markets – is executing on its commitment to international expansion.
Led by Marc-Alexander Christ, SumUp is a financial technology company that allows businesses of all sizes to receive payments quickly and simply, both in-store and online. With SumUp, merchants can accept credit and debit cards, using their smartphones or tablets, in a secure and cost-effective way. Its mobile card acceptance solution is built on proprietary end-to-end EMV payment technology, terminal hardware and mobile applications. The company supports over 3 million merchants globally and operates in 34 markets across Europe, the U.S., Brazil and Chile.
Founded in 2011, Fivestars was backed by Lightspeed, DCM, Menlo Ventures, HarbourVest, Salt Partners, Y-Combinator and others. Together, let’s #LoveLocal.
FinSMEs
15/10/2021