Lightspeed Commerce to Remain Public, Focus on Small Acquisitions and Organic Growth
Toronto, Canada - Lightspeed Commerce Inc. (NYSE: LSPD), a provider of payment-processing software, announced Thursday it will continue operating as a publicly traded company. The company also shared its plans for strategic growth, including small acquisitions and investment in key business areas.
Key Highlights:
* Board of Directors determines that remaining public is the optimal path forward.
* Company to prioritize growth in North American retail and European hospitality.
* $100 million stock buyback planned immediately, with a total buyback of up to $400 million.
"We engaged in a comprehensive strategic review and concluded that staying public is in the best interests of our shareholders," said Dax Dasilva, founder and CEO of Lightspeed Commerce.
Lightspeed's strategy revolves around leveraging artificial intelligence, inventory management, and freeing up capital for investments in growth areas. The company intends to pursue tuck-in acquisitions and partnerships to enhance its capabilities, such as payroll.
"M&A is an integral part of our growth strategy, but we will focus on small and strategic acquisitions," added Dasilva.
Analysts have expressed some caution, citing increasing competition and Lightspeed's narrowing total addressable market. Richard Tse of National Bank of Canada lowered his price target for Lightspeed shares to $15.
Financial Results:
In its third-quarter earnings report, Lightspeed Commerce reported revenue of $280.1 million, slightly below analysts' estimates of $283.4 million. The company remains unprofitable.
Advisory Support:
JPMorgan Chase & Co., Royal Bank of Canada, and The Boston Consulting Group Inc. have provided advisory support during the strategic review process and continue to assist Lightspeed with its transformation.