Shift4 buys Israeli fintech co Finaro for $575m

Yigal Rotem Photo: Tamar Matsafi

US fintech company Shift4 said Herzliya-based Finaro will provide technology to drive its ambitions, which include clearing for SpaceX's Starlink satellite Internet service.

US fintech company Shift4 (NYSE: FOUR) has announced the acquisition of Israeli online merchant acquiring bank and payment service provider Finaro (formerly Credorax). Shift4 has a market cap of $4.3 billion and is controlled by CEO Jared Isaacman.

In a cash and share deal worth at least $575 million, Shift4 will pay $218.5 million cash plus shares worth $356.5 million for Finaro and several tens of millions of dollars more in performance payments.

Based in Herzliya, and with a business center in Malta, Credorax was founded 13 years ago by Israeli serial entrepreneur Yigal Rotem and Benjamin Nachman. Credorax, which named its name to Finaro last year, began operating 10 years ago after receivng a banking license from the EU. The company has raised $150 million to date from investors including Blumberg, FTV and IVP but has not needed to raise money in recent years with annual revenue of $200 million and profits for the past several years.

Finaro is considered one of the leading clearing technology providers in the ecommerce sector in Europe and operates as a licensed clearing gateway for Visa and Mastercard. In addition to clearing, Finareo provides other financial services such as managing cross-border risks, managing foreign currency, digital wallets and cryptocurrency as well as business intelligence.  

Shift4 said, "Finaro will provide the global infrastructure and cutting-edge technology needed to drive Shift4’s international ambitions to deliver a unified commerce experience. By integrating Finaro’s capabilities, Shift4 will be able to expand the company’s current services around the world, including its next-generation SkyTab POS solution, Shift4Shop eCommerce platform, and VenueNext stadium offering. Shift4 also has more than 425 software integrations and over 200,000 merchant customers, many of which have a multinational presence and provide immediate international opportunities that can now be unlocked as a result of this acquisition."

Jared Isaacman is a friend of Elon Musk, a pilot and commercial astronaut, who was the commander of SpaceX flight Inspiration4, which orbited 585 kilometers above the earth last September. Isaacman plans using Shift4 and Finaro to provide clearing for Musk's ambitious SpaceX Starlink satellite Internet service.

Published by Globes, Israel business news - en.globes.co.il - on March 1, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Yigal Rotem Photo: Tamar Matsafi
Yigal Rotem Photo: Tamar Matsafi
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