Lightspeed Commerce Explores Potential Sale Amid Leadership Shakeup

Lightspeed Commerce, a Canadian payments software company, is exploring a potential sale with the help of financial advisors. This follows a CEO change and investor concerns over the company's growth strategy. Company founder Dax Dasilva has returned to lead, focusing on profitability. Talks are in early stages.

Lightspeed Commerce, a leading Canadian payments software provider valued at C$2.8 billion ($2.08 billion), is evaluating potential sale options, according to insiders.

This development comes months after the Montreal-based company replaced its CEO, Jean Paul Chauvet, with founder Dax Dasilva. Investors had raised concerns over the company's focus on growth over profitability following subpar quarterly results in February. Investment bankers at JPMorgan Chase are now assisting Lightspeed in exploring its options and attracting potential buyers, possibly including private equity firms, though discussions are in preliminary stages.

Despite facing a challenging share price performance and following Advent International's acquisition of Nuvei, another Canadian payments firm, Dasilva remains open to privatization. Lightspeed's stock has dropped significantly since its peak in 2021, influenced by weak consumer spending and adverse reports by short-seller Spruce Point Capital. Under Dasilva's renewed leadership, the company is prioritizing profitability to drive its turnaround strategy.

(With inputs from agencies.)