Global Payments is weighing an acquisition of Shift4 Payments, people with knowledge of the matter said.
Atlanta-based Global Payments has been working with an adviser to study the feasibility of a deal for Shift4, according to the people, who asked not to be identified discussing confidential information.
Deliberations are ongoing and there's no certainty they'll result in a transaction, they said. Representatives for Global Payments and Shift4 didn't immediately respond to requests for comment.
Shares in Allentown, Pennsylvania-based Shift4 rose as much as 13% on Thursday. The stock was up 6.3% at 3:44 p.m. in New York, giving the company a market value of about $5.9 billion. Global Payments was down 3.3% for a market value of roughly $32.5 billion.
Companies such as Global Payments and Shift4 sit at the heart of the digital economy, offering secure channels linking sellers, customers and their banks in exchange for a fee. They were among the biggest winners from the online shopping boom during the COVID-19 pandemic. But they've been under pressure to consolidate as they compete to offer more technology to their customers.
Shift4 helps process more than $200 billion in payments every year, with operations in North America, Europe and Asia, according to its website. The company serves companies in sectors ranging from airlines and travel to casinos and gaming. Shift4 was founded in 1999 and went public in 2020.
Global Payments's software is used to manage transactions everywhere from restaurants to arenas, and can be used at points of sale or via digital devices. The company saw revenue rise 7.4% in the nine months through September to about $7.2 billion.
Last year, Global Payments agreed a roughly $3.4 billion deal to buy Evo Payments Inc. to expand into new markets in Europe and South America. In a research note published this week, Bloomberg Intelligence analyst Diksha Gera wrote that the company could look to pursue more strategic deals thanks to its healthy balance sheet and a $5.75 billion revolving credit line.
