Cantaloupe, based in Malvern, Pennsylvania, is considering strategic options that may include a potential sale or going private, as confirmed by four sources familiar with the matter. Specializing in digital payment technology for self-service industries like vending machines, car washes, and arcades, Cantaloupe serves clients across North America, Europe, and Australia.
The company is collaborating with JPMorgan Chase investment bankers on these strategic plans. Although the possibility of a sale is being explored, it is not assured. Following news of the potential sale, Cantaloupe's stock initially surged nearly 10% before leveling off.
Cantaloupe and JPMorgan have not yet commented on the matter. With a nearly 60% stock increase since September, Cantaloupe's current market value stands at approximately $750 million, with minimal debt.
The digital payments sector has seen sporadic merger and acquisition activity in recent years, with niche payment service providers attracting interest to enhance the capabilities of larger payment companies. Private equity firms are also actively participating in acquiring payment firms, driven by the ongoing trend toward digital payment adoption and potential for future growth through strategic acquisitions.
Recent notable deals in the industry include Shift4 Payments' acquisition of Global Blue for $2.5 billion and Genstar Capital's investment in AffiniPay, a specialist in providing payment services to professionals like accountants and lawyers.