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TransactionWatch – Week of October 11th – October 15th

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Growth through software has evidently been a major focus this week with the announcements of several notable M&A deals surrounding ISVs and their growing role in payments. To start, the European-based POS and payments provider, SumUp, announced their acquisition of Fivestars for $317 million in cash and stock. Last valued at $285 million in October 2020, Fivestars offers loyalty, marketing and payment solutions to about 12,000 SMBs across the U.S. This deal marks SumUp’s first acquisition in the U.S. and will serve as a large steppingstone for growing their customer base within the country. Separately, Mindbody announced their acquisition of ClassPass, a complementary fitness marketplace provider. Mindbody, a pioneer in monetizing payments through software, will be able to significantly increase payment volume going through their platform. Details of this deal were not disclosed; however, it is suspected to be an all-stock deal. In addition to the acquisition, Mindbody also revealed it has secured a $500 million investment led by Sixth Street.

In other M&A news, BillTrust announced this week they have acquired the complementary B2B collections software provider, iController, for $58 million in cash. iController is based out of Belgium and has a growing presence of about 3,000 users across the region. This acquisition positions BillTrust to expand their global reach and ultimately increase their customer footprint.