Shift4 has made a significant move in the payments industry with its acquisition of Revel in a $250 million deal. This acquisition will expand Shift4's capabilities in the payments space.
Revel's technology will be integrated into Shift4's existing platform, allowing for a more seamless payment experience for customers. Revel's expertise in payment processing will also enhance Shift4's offerings.
The acquisition is expected to close in the coming months, pending regulatory approval.
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Dive Brief
Shift4 Payments is acquiring Revel Systems, a point-of-sale company, for $250 million in cash.
The acquisition is expected to close by July 1, according to President Taylor Lauber.
Shift4 will pay $250 million in cash for the acquisition.
The deal will allow Shift4 to cross-sell payment services to Revel's customers.
Revel's point-of-sale terminals are currently in about 18,000 merchant locations.
This represents a $17 billion payment opportunity, according to Shift4's Q1 earnings shareholder letter.
Shift4 plans to incorporate the best capabilities of Revel into its SkyTab POS system.
Broaden your view: Pos System Revel
Dive Insight
Shift4's proposed acquisition of Revel is the latest in a string of additions by the company. This deal is significant because it will allow Shift4 to cross-sell payment services to Revel's customers, according to CEO Jared Isaacman.
Revel, a privately-held company based in Atlanta, provides iPad-based POS systems to restaurants and specialty retailers. It's led by CEO Greg Dukat and has raised a total of $113.5 million in funding.
The acquisition presents Shift4 with the opportunity to sell to Revel clients and benefit from a combined sales effort in the U.S., with partners in Europe. This is a strategic move that aligns with Shift4's goal of expanding its customer base.
Here are some key stats about Revel's customer base and market opportunity:
Shift4's leadership has been openly frustrated about its public market valuation, and CEO Jared Isaacman has suggested that the company could revert to being a private company. This is not a new idea, as Isaacman mentioned it in 2022.
Revel
Revel was acquired by Shift4, a company that offers payments and other technology to various industries, including restaurants.
Shift4's restaurant POS system, SkyTab, is used by many large chains.
Burger King, Applebee's, and Denny's are among the operators that use SkyTab.
As of late, Shift4 has stopped breaking out payment margins by vertical, a practice they used to follow.
It's necessary to go back to Q3 2022 to find out the truth about Shift4's payment margins.
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