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TransactionWatch - Week of March 30th - April 3rd

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This Week’s M&A Overview

In the wake of the COVID-19 pandemic, activity in the overall M&A space has seen a slowdown across a wide range of industries, including merchant acquiring. As small-to-medium sized businesses (SMBs) take a hit due to lower consumer spending or temporary closures, many merchant acquirers and payment processors are largely affected. Many entities within this industry are reassessing their current portfolios and halting conversations regarding upcoming potential deals. Firms are now putting their focus more towards sustaining their current portfolios’ survival in the short-term in their efforts to maintain their profitability in the long run.

Ongoing deal conversations are still apparent in the market, however, due to the current environment, terms within the deals are becoming more draconian. The market has somewhat rapidly shifted into more of a “buyers” market as certain companies seek fast liquidation and cashflow. The vulnerability of the market has left many uncertainties, however, more M&A activity within the merchant acquiring industry is to be expected in the coming days and weeks.