Lightspeed Commerce Divests Upserve U.S. Hospitality Product Line to Skyview Equity For US$81 Million
Lightspeed Commerce (LSPD.TO, LSPD) sold its non-core Upserve U.S. hospitality product line to Skyview Equity for total cash consideration of up to US$81 million, $37 million of which is subject to an earnout, it said Wednesday.The divestiture is consistent with Lightspeed's strategy to "streamline its portfolio and concentrate on its two core growth engines of retail in North America and hospitality in Europe," it said. The deal encompasses about 3,200 U.S. hospitality Customer Locations and about 70 employees, who are expected to join Skyview in connection with the sale.Lightspeed expects to deliver fiscal fourth quarter and full year fiscal 2026 revenue and gross profit that are ahead of the previously-established outlook and adjusted EBITDA in-line with the previously established outlook. The divestiture is expected to impact the company's three-year financial outlook presented at its Capital Markets Day in March 2025 by about 5% on the absolute value of each of gross profit, adjusted EBITDA and free cash flow for fiscal 2028.The $37 million earnout is structured over 24 months and tied to performance targets, it said. For the $44 million in fixed cash consideration, $20 million was paid at closing, with the vast majority of the balance payable within 90 days.U.S.-listed shares of the company were last seen down 2.7% at US$8.80 in pre-market trading.