Shift4 takes majority stake in Vectron Systems to expand European presence

Shift4, a leader in integrated payments and commerce technology, has announced a strategic expansion into the European market by acquiring a majority stake in Vectron Systems AG, a major supplier of point-of-sale (POS) systems based in Germany. This acquisition marks a significant step in Shift4‘s global growth strategy, targeting the restaurant and hospitality verticals across Europe.

Details of the Acquisition

Shift4’s acquisition of Vectron includes approximately 65,000 POS locations across Europe, representing a substantial volume opportunity of about €25 billion with minimal current payment monetization. The deal is expected to significantly enhance Shift4’s customer footprint and establish a strong distribution network of approximately 300 POS resellers throughout Europe. Following the initial acquisition, Shift4 plans to complete the purchase of additional Vectron shares through a public tender offer expected to conclude within the next month. A subsequent de-listing and formal integration of Vectron into Shift4’s operations are planned shortly thereafter.

Strategic Implications and Expansion Plans

Shift4 CEO Jared Isaacman highlighted the strategic importance of this acquisition: “Shift4 was at the forefront of the convergence between software and payments in the restaurant and hospitality verticals in the US. We see an incredible amount of demand for a similar all-in-one solution across Europe,” Isaacman stated. The acquisition is expected to allow Shift4 to integrate its payment services with Vectron’s existing customer base and products, significantly enhancing the value proposition offered to European clients.

Integration and Synergy

The merger with Vectron is expected to unlock considerable synergies, expand Shift4’s distribution capabilities, and monetize payments for a large, existing install base. This strategic move is seen as a continuation of Shift4’s successful playbook, which includes enabling powerful all-in-one POS and payment solutions that are unrivaled in Europe.

Further Acquisitions and Growth

In addition to the Vectron acquisition, Shift4 has recently completed the purchase of Revel Systems, a company with over 18,000 merchant locations worldwide. This acquisition represents a $17 billion+ payment opportunity and is expected to bolster Shift4’s SkyTab distribution both in the U.S. and internationally.

Advisory and Support

Shift4 retained Perella Weinberg as its financial advisor and Gleiss-Lutz as its legal advisor for the Vectron acquisition. For the acquisition of Revel Systems, legal advisory was provided by Chiesa, Shahinian, and Giantomasi.

With these strategic acquisitions, Shift4 is not only expanding its global footprint but also enhancing its product offerings and market reach. The company is set to redefine the POS and payments landscape in Europe, leveraging Vectron’s local expertise and infrastructure. This move aligns with Shift4’s goal to deliver superior technology solutions and to drive significant growth in the international markets.