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Update 9:32pm: Adds Global Payments comment.
Shift4Payments (NYSE:FOUR) rose 4.7% amid a report that Global Payments (NYSE:GPN) is evaluating a purchase of the company. Global Payments fell 2.6%.
Global Payments (GPN) is working with an adviser as it looks at he possiblity of an acquisition, according to a Bloomberg report on Thursday, which cited people familiar with the matter.
Global Payments (GPN) said it isn’t in talks with Shift4 (FOUR) about any transaction following a report earlier that the company was evaluating a purchase of Shift4.
“Although we typically do not respond to market speculation or rumors, we are not in discussions with Shift4 regarding any type of strategic transaction,” a Global Payments (GPN) spokesperson told Seeking Alpha in an emailed statement.
Global Payments (GPN) has a market cap of $33.7 billion, while Shift4 is valued at $5.6 billion. GPN shares were up 28% this year before Thursday, while Shift4 advanced 37%.
News of a potential deal comes after there was a report in September that several private equity firms were evaluating Shift4 Payments (FOUR) as a takeover target, according to a Street Insider item at the time. PE firm Advent was said to be the potential lead bidder. Shift4 is said to have hired Goldman Sachs to evaluate the potential interest.
Shift4 (FOUR) didn’t respond to Bloomberg and Seeking Alpha requests for comment.
Global Payments (GPN) last big acquistion in the payments space was earlier this year when it purchased rival EVO Payments for about $4 billion, including debt.
Shift4’s (FOUR) short interest is 18.5%.
