By Aisling Finn on Thursday 14 October 2021
SumUp has paid $317m, in a mix of cash and stock, for US payments network Fivestars.
The long-promised flurry of fintech M&A activity has so far lived up to expectations and now it’s the turn of payments service SumUp.
SumUp has acquired eCommerce network Fivestars for $317m in a mix of cash and stock.
San Francisco-based Fivestars supports SMEs in the US by offering an all-in-one payments, marketing and rewards platform that processes more than $3bn in sales and over 100m transactions per year.
"We founded Fivestars to give small businesses the opportunity to thrive in the digital economy and over the years, we've achieved just that,” Victor Ho, CEO and co-founder of Fivestars said.
“Understanding that SumUp shares this mission, it was an easy decision to partner, and together, we look forward to supporting a retail market that champions small business success."
The acquisition will help SumUp to expand its technology offering, as well as expanding its presence in the US.
SumUp was able to acquire Fivestars thanks to its bumper €750m funding round—which was one of the biggest rounds ever raised by a private fintech in Europe—it secured in March 2021.
"Our global community of merchants has battled through lockdowns and volatility and we're confident that this acquisition will further energize the US's recovering small business economy,” Marc-Alexander Christ, SumUp co-founder added.
“Now is the time to make sure our presence is as strong in the U.S. as it is in Europe and, by acquiring Fivestars, SumUp will deliver for US-based merchants as it has in other international markets."
Under the terms of the acquisitions, Fivestars’ CEO and co-founder, as well as its San Francisco-based team, will remain in their roles and continue to operate under Fivestars.
Since 2012, SumUp has grown to support three million merchants across 34 markets and employees more than 2,800 employees across three continents.