By Milana Vinn and David French
NEW YORK (Reuters) – Cantaloupe is exploring strategic options, including a potential sale or a go-private transaction, four people familiar with the matter said, the latest specialized U.S. payments processor to consider such a move.
Malvern, Pennsylvania-based Cantaloupe provides digital payments technology and software to companies providing self-service offerings, such as vending machines, car washes and arcades. Its products are used in North America, Europe and Australia, according to its website.
The company is working with investment bankers at JPMorgan Chase on the strategic plans, according to the sources, who spoke on condition of anonymity to discuss confidential deliberations. They warned that a sale was not guaranteed.
Shares in Cantaloupe traded almost 10% higher on news of the sale effort, before giving up their gains.
Cantaloupe and JP Morgan did not immediately respond to requests for comment.
Cantaloupe’s stock has gained almost 60% since the start of September to give it a market value of around $750 million. The company carries minimal debt.
Mergers and acquisition activity in the digital payments space has been sporadic in the last two years, as many companies struggled to live up to the hype around e-commerce stemming from the pandemic which had turbocharged valuations.
But deal flow involving companies that provide niche payments – such as serving certain industries, or geographies, for example – has been active as large payments companies seek to complement their existing capabilities.
Private equity firms have also been keen buyers of payments companies, betting on the long-term trend towards digitalization of payments and the opportunity of scaling up through future dealmaking.
Such deals in the space include Shift4 Payments agreeing earlier this month to purchase duty-free focused Global Blue for $2.5 billion, and Genstar Capital striking a deal to take a significant stake in AffiniPay, which provides payments to professionals such as accountants and lawyers.
(Reporting by Milana Vinn and David French in New York; Editing by Nick Zieminski)
