Shift4 has been growing by M&A geographically, horizontally (i.e. new verticals) and through vertical integration (new capabilities). They are huge on cross-selling as a growth accelerant.
Acquiring TYR and its Australian banking licence would obviously require them to hold a decent amount of capital in the Australian subsidiary that held the ADI licence and have an appropriate local subsidiary board that oversaw the operations.
The benefit down the track however is that they could get very valuable expertise to enable them to eventually offer banking services in other international markets. They'd also get strong IP in medical payments that they might be able to leverage internationally.
Personally if I was the TYR chair I would be flying to Pennsylvania and explaining why Shift4 should acquire BOTH Smartpay and Tyro.
TYR Price at posting:
75.8¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)