(Bloomberg) — SumUp Inc., a UK global payments company, acquired Fivestars as part of a push to become a one-stop service provider for small businesses.
SumUp said in a statement Thursday it paid $317 million in cash and stock to buy Fivestars, headquartered in San Francisco. Fivestars provides a payments and marketing platform that combines automation, rewards, and promotions for nano and small merchants in the US and Canada.
While London-based SumUp already operates in the US this is its first acquisition there. The deal will give it access to the more than 12,000 businesses in Fivestars’s network that drive over $3 billion in sales.
SumUp is not currently considering an initial public offering, though it could eventually list at a later date, said Andrew Helms, US managing director.
“We believe we can create significant value’under the radar’ and have access to significant pools of private capital, both debt and equity,” Helms said in an interview. “However, this doesn’t mean that we might not decide to follow this route in the future.”
SumUp serves more than three million merchants globally operating in 34 markets. It raised 750 million euros ($866 million) in March from existing and new investors including Goldman Sachs, Temasek, Bain Capital Credit, Crestline, and funds managed by Oaktree Capital Management.
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