Shift4 / Finaro 2023
Shift4 acquired Finaro for $575M on April 19, 2022.
- Target
- Finaro
- Acquirer
- Shift4
- Deal value
- $575M
- Deal type
- Mixed
- Announced
- April 19, 2022
- Sub-sector
- Payments
Transaction overview
- Shift4 announced the acquisition of Finaro on April 19, 2022, for approximately $575 million.
- Consideration consisted of roughly $360 million in cash and $215 million in Shift4 common stock.
- The deal closed on August 30, 2023, after an extended regulatory review process.
- Finaro is a cross-border payments and acquiring company licensed as a bank in Malta and the EU.
- Finaro held a European banking license, giving it direct card-scheme membership and multi-currency settlement capabilities.
- Shift4 processes payments primarily for hospitality, food and beverage, and stadium venues across the United States.
- Shift4 pursued Finaro to gain a licensed European acquiring infrastructure and accelerate international expansion.
Why it matters
- The deal gave Shift4 a European banking license, removing the need to rely on third-party acquirers in the region.
- Finaro's direct scheme membership allowed Shift4 to process cross-border transactions without an intermediary acquiring bank.
Strategic rationale
Shift4 acquires EU/UK e-commerce acquirer to give it international card licensing and cross-border processing capability.
Deal terms & multiples
About Finaro
Finaro is a Malta-headquartered payments company that operates under a European banking license, enabling it to acquire transactions directly across the EU. The company offers cross-border card acquiring, multi-currency settlement, and payment gateway services to e-commerce and omnichannel merchants. Its banking license granted it principal membership in Visa and Mastercard networks, reducing reliance on sponsor banks. Finaro served merchants across Europe, Asia, and other international markets before the acquisition.
- Founded
- 2012
- HQ
- Malta
- Key metric
- European banking license with direct Visa and Mastercard principal membership
About Shift4 NYSE: FOUR
Shift4 Payments is a Pennsylvania-based payment processing company that went public on the NYSE in June 2020 under the ticker FOUR. The company processes payments for hotels, restaurants, stadiums, and entertainment venues, and reported over $200 billion in payment volume in 2022. Shift4 has expanded beyond its core hospitality base through acquisitions, including SkyTab point-of-sale hardware and software. The company is controlled by founder and CEO Jared Isaacman.
- Founded
- 1999
- Ticker
- NYSE: FOUR
Frequently asked questions
How much did Shift4 pay for Finaro?
Shift4 paid approximately $575 million in total consideration, split between roughly $360 million in cash and $215 million in Shift4 stock.
When did the Shift4 Finaro deal close?
The deal closed on August 30, 2023, more than 16 months after the April 2022 announcement due to European regulatory review.
Why did Shift4 acquire Finaro?
Shift4 acquired Finaro to obtain a European banking license and direct card-scheme membership, supporting its international expansion without relying on third-party acquirers.
Where is Finaro headquartered?
Finaro is headquartered in Malta and holds a banking license that covers operations across the European Union.
What does Finaro do?
Finaro provides cross-border card acquiring, multi-currency settlement, and payment gateway services to e-commerce and omnichannel merchants internationally.
What regulatory approval was required for the Shift4 Finaro deal?
The transaction required approval from the Malta Financial Services Authority, which oversees Finaro's banking license, along with other European regulatory bodies.
Sources
- investors.shift4.com /news-releases/news-release-details/shift4-announces-acquisition-finaro