Shift4 Payments Inc. announced Monday that it has agreed to acquire Givex Corp., a provider of gift cards, e-gift cards, loyalty programs and point-of-sale solutions, in an all-cash transaction valued at C$200 million, or $148 million, respectively. The acquisition of Toronto-based Givex, which serves the hospitality and retail industries, will expand Shift4’s customer base to include more than 130,000 locations in over 100 countries. The transaction is expected to close in November.
While Shift4 currently has its own gift card and loyalty solution, the acquisition of Givex brings “enhanced corporate gifting and loyalty capabilities that will expand Shift4’s current offerings,” says Nate Hirshberg, Shift4’s executive vice president and spokesperson, via email.
Merchants in Givex’s portfolio include fast-food chain Wendy’s, steakhouse chain Texas Roadhouse, convenience store chain 7-Eleven Inc., Marriott Hotels and Resorts and Nike Inc. Givex’s merchant portfolio includes “many well-known blue-chip merchants who can now benefit from Shift4’s end-to-end payments solution,” Hirshberg adds.
The acquisition of Givex is also seen as a natural fit for Shift4, which has a long history of acquiring third-party companies to enhance its value proposition, says Cliff Gray of Gray Consulting Ventures LLC.
“Shift4 has shown that it is good at integrating third-party technologies that add value and provide lower-cost alternative payment methods to credit and debit cards (like gift cards),” says Gray. “Givex offers these capabilities.”
Observers say the introduction of Givex’s loyalty programs could also help merchants increase customer loyalty, especially among consumers who prefer to pay by credit card.
Givex loyalty programs include tiered offers that allow consumers to earn more points and rewards based on their spending level; visit-based programs that encourage repeat visits; points programs and customized loyalty programs.
“There are consumers who pay with their credit card anyway but want some sort of reward from the merchant, and Givex can provide that,” says Gray. “When you look at Shift4’s platform and marketing strategy, this acquisition makes perfect sense.”
Center Valley, Pennsylvania-based Shift4 has been an active buyer in recent months, cementing its already significant position in the hospitality industry with a $250 million deal for POS technology provider in the second quarter alone Revel SystemsWeeks later, the company paid about $38 million for the acquisition Vectron Systems AGa deal that gave Shift4 a greater presence in the restaurant POS technology space in Europe.
