Paytech SumUp Makes US Debut with £231m Fivestars Acquisition

Fivestars’ team, including its CEO and co-founder, Victor Ho, will remain in their roles and continue to operate Fivestars. 

London-based payments service provider SumUp is up for its first US acquisition with the £317 million (£231 million) purchase of Fivestars.

San Francisco-based Fivestars offers a “two-sided local commerce network” that combines a marketing platform with integrated payments.

The acquisition is via a mix of cash and stock. It will enable both companies to offer payments and marketing automation services.

“SumUp is a market leader because of our support for, and belief in, small businesses. Our global community of merchants has battled through lockdowns and volatility and we’re confident that this acquisition will further energise the US’s recovering small business economy,” explains Marc-Alexander Christ, SumUp Co-Founder.

Fivestars’ team, including its CEO and co-founder, Victor Ho, will remain in their roles and continue to operate Fivestars.

According to LinkedIn, Fivestars was launched in 2011 and has 298 employees listed. The firm has 65+ million users “discovering and driving sales” to 14,000+ small businesses. It helps with 100 million transactions and $3 billion (£2.18 billion) in local merchant sales per year. Fivestars has raised over $115 million (£83.8 million) from investors including Lightspeed, DCM, Menlo Ventures, HarbourVest and Salt Partners.

Fintech firm SumUp powered up in the same year as Fivestars. It has over 2,800 employees across three continents.

Following a €750 million (£635 million) raise in March 2021, SumUp – which has over three million merchant users in 34 markets (Europe, the US, Brazil and Chile) – says it is executing on its commitment to international expansion.

SumUp provides card terminals and online services used by “businesses of all sizes from DHL to black cab drivers”. It lets merchants accept credit and debit cards, using their smartphones or tablets. SumUp’s mobile card acceptance solution is built on proprietary end-to-end EMV payment technology, terminal hardware and mobile applications.

In other news, earlier this month, Michael Schrezenmaier joined SumUp as CEO Europe, His experience includes ​​Pipedrive, a CRM platform which achieved unicorn status during his tenure.

Antony Peyton
Antony Peyton
Antony Peyton is the Editor of eWeek UK. He has 18 years' journalism and writing experience. His career has taken him to China, Japan and the UK - covering tech, fintech and business. Follow on Twitter @TonyFintech.

Popular Articles