Lightspeed Commerce Engages in Discussions of ‘Potential Strategic Alternatives’
Lightspeed Commerce responded to media reports of a potential sale of the company, saying that it periodically undertakes a strategic review of its business and that it does not intend to disclose more information except as required by its regulatory obligations.
“While it is the long-standing policy of Lightspeed not to comment on market rumors, the company notes the recent media reports concerning a potential transaction involving the company,” Lightspeed said in a Wednesday (Sept. 25) press release.
“Lightspeed periodically undertakes, and is currently conducting, a strategic review of its business and operations with a view to realizing its full potential,” the company added. “In this context, the company has engaged, and may continue to engage, in discussions relating to a range of potential strategic alternatives.”
The company added in the release that its board of directors is committed to acting in the best interests of Lightspeed and its stakeholders, and that the company does not plan to share more information about these matters except as required under its regulatory obligations.
Reuters reported Wednesday that Lightspeed was working with a financial adviser to explore options, including a potential sale, and that potential buyers could include private equity firms.
The report added that the talks are at an early stage and there is no guarantee there will be a deal.
Since Lightspeed went public about five years ago, its stock has lost more than a third of its value, according to the report. The report attributed the drop to weak consumer spending and a decline in the investor enthusiasm for FinTech stocks that was seen during the pandemic.
It was reported in March that Dax Dasilva, the founder of Lightspeed who was interim CEO at the time and is now CEO, was wondering if going private would be a better option for the company.
The report said that Dasilva believed the stock market was a good place for Lightspeed, but he wondered if the company could do more as a private company. He added that the firm is always open to discussions on that topic.
In May, Dasilva told PYMNTS CEO Karen Webster in an interview: “We’ve got profitability as an absolute priority. We’ve cut costs across the company and capture operational efficiencies.”
The post Lightspeed Commerce Engages in Discussions of ‘Potential Strategic Alternatives’ appeared first on PYMNTS.com.