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TransactionWatch - Week of April 13th - April 17th

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This Week’s M&A Overview

The ongoing extent of the COVID-19 crisis continues to hit the merchant acquiring industry this week as a slowdown in new deals have been apparent. Many PE firms and acquirers are taking a step back in making acquisitions for the time being as it may prove to be too high of a risk. As a large portion of the country’s retail and restaurant establishments remain close, many payment processing providers are taking a hit to their revenue which is hindering their movement towards pursuing acquisition targets.

While many PE firms and acquirers are making necessary shifts in their operations and investments during this time, some are seeking additional capital to pursue future growth targets. This week Stripe announced an extension to their Series G funding round and pulled in an additional $600 million from investors. The eCommerce market is proving to be a more important area for payment processors as the shift from in-store transactions to online continues to ramp up, however, consumers are becoming more wary of their financials during this current economic environment which is impacting their spending habits.