London-based fintech firm SumUp acquires Fivestars for €273M, to expand US operations

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UK-based global payment company SumUp announced that it has acquired marketing startup Fivestars to expand its operations across the United States. The company said on Thursday that it paid $317M (approx €273M) in a mix of cash and stock to buy the San-Francisco-based company. 

The acquisition announcement comes a few months after SumUp raised €750M in funding led by Goldman Sachs.

Why this acquisition?

The deal will provide SumUp with access to the more than 70M consumer-members and 12,000 small businesses within Fivestars’s network, which currently drives over $3B (approx €2.6B) in sales and 100M transactions per year. SumUp will tap into Fivestars’ local market expertise and trusted commerce network for its nationwide expansion.

“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. Now is the time to make sure our presence is as strong in the U.S. as it is in Europe and, by acquiring Fivestars, SumUp will deliver for U.S.-based merchants as it has in other international markets” says Marc-Alexander Christ, Co-founder of SumUp.

Fivestars’ team, including its CEO and co-founder, Victor Ho, will remain in their roles and operate independently. For the San-Francisco company, the acquisition will result in expanded technology offerings for American small businesses that will help them save money on payments and make money through automated marketing.

Victor Ho, Co-founder and CEO of Fivestars, says, “We founded Fivestars to allow small businesses to thrive in the digital economy and over the years, we’ve achieved just that. Understanding that SumUp shares this mission, it was an easy decision to partner, and together, we look forward to supporting a retail market that champions small business success.”

Fivestars: What you need to know

Founded by Matt Doka and Victor Hoin in 2011, Fivestars provides payments and marketing solutions that combine automation, rewards, and promotions for small merchants in the US and Canada.

The company has raised $115M (approx €99M) from several investors, including Lightspeed, DCM, Menlo Ventures, HarbourVest, Salt Partners, Y-Combinator, and others.

SumUp: What you need to know

Founded in 2011 by Daniel Klein, Jan Deepen, Marc-Alexander Christ, Petter Made, and Stefan Jeschonnek, SumUp is a fintech company that allows businesses of all sizes to receive payments quickly and simply, both in-store and online. 

The London-based company supports over 3M merchants globally and operates in 34 markets across Europe, the US, Brazil, and Chile. 

With SumUp, merchants can accept credit and debit cards through their smartphones or tablets securely. The company’s mobile card acceptance solution is built on proprietary end-to-end EMV payment technology, terminal hardware, and mobile applications.

To date, the company has raised $1.4B (approx €1.2B) in funding from several investors including Goldman Sachs, Venture Incubator, LLC, BBVA Ventures, Groupon, Life.SREDA, Bain Capital Credit, GS Growth, and others.

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Vigneshwar Ravichandran

Vigneshwar has been a News Reporter at Silicon Canals since 2018. A seasoned technology journalist with almost a decade of experience, he covers the European startup ecosystem, from AI and Web3 to clean energy and health tech. Previously, he was a content producer and consumer product reviewer for leading Indian digital media, including NDTV, GizBot, and FoneArena. He graduated with a Bachelor's degree in Electronics and Instrumentation in Chennai and a Diploma in Broadcasting Journalism in New Delhi.

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