Investing.com -- Shift4 Payments reported stronger-than-expected fourth-quarter earnings, but its shares fell 10% in aftermarket trading as it announced a $2.5 billion acquisition of Global Blue Group Holding Ltd (NYSE:GB). Shares of Global Blue surged more than 18%.
The payment processing firm posted adjusted earnings per share of $1.35 for the quarter, surpassing analysts' estimates of $1.13. Revenue came in at $887 million, well above the consensus forecast of $406.93 million.
Shift4 said it had agreed to acquire ayments provider Global Blue for $7.50 per share in cash, a 15% premium to Global Blue’s last closing price. The deal values Global Blue at approximately $2.5 billion in enterprise value.
As part of the transaction, Global Blue shareholders Ant International and Tencent Holdings Ltd (HK:0700) plan to remain investors in the combined company and explore strategic partnerships with Shift4. The collaboration is expected to expand Shift4’s reach in global e-commerce, including the distribution of Alipay+ and Weixin Pay across its payment network.
The acquisition, unanimously approved by both companies’ boards, is set to close by the third quarter of 2025, pending regulatory approvals and other conditions. Shift4 plans to finance the purchase with cash on hand and a $1.8 billion bridge loan facility.
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