Lightspeed Commerce Considers Sale Amid Struggles with Profitability

Lightspeed Commerce, a Canadian payments software company, is exploring options including a potential sale. The move comes after disappointing results and a CEO change. Investment bankers at JPMorgan Chase are involved in the evaluation process. Although discussions are confidential and in early stages, no deal is guaranteed.

Lightspeed Commerce, a Canadian payments software company valued at C$3.2 billion ($2.37 billion), is exploring potential sale options with the help of a financial adviser, sources familiar with the situation revealed. This exploration follows concerns raised by investors over weak quarterly results in February and a leadership reshuffle where founder Dax Dasilva returned as CEO.

The firm has engaged JPMorgan Chase to analyze strategies and gauge interest from potential buyers, including private equity firms. Although the discussions are still in their preliminary stages and a deal is not certain, Lightspeed's U.S.-listed shares surged by 17% on Wednesday following the news report by Reuters.

In an official statement, Lightspeed confirmed that it has begun a strategic review, evaluating various options like partnerships, acquisitions, or other transactions to boost growth and shareholder value. Despite past challenges, the company aims for a turnaround with a renewed focus on profitability.

(With inputs from agencies.)