After conducting a strategic review of its business and operations, Montréal-based Lightspeed Commerce has announced plans to stay public and execute “a full transformation plan.”
Lightspeed said its board, a committee of independent directors, and executive leadership unanimously reached this decision, noting that this strategy “presents the best available path to maximizing value” for both the firm and its shareholders.
The point-of-sale and commerce technology company confirmed this strategic review last year following reports that it was exploring options including a potential sale. Today’s announcement, which came alongside the release of Lightspeed’s fiscal third-quarter earnings, indicates that a go-private deal or acquisition is not on the immediate horizon.
Lightspeed’s transformation plan involves focusing on two “leading growth engines” for the company: retail in North America and hospitality in Europe. The company intends to expand the number of locations it serves, increase software and payments penetration, and optimize other areas of the company’s business for efficiency.
As part of this strategy, Lightspeed intends to free up capital to invest in growth areas and conduct a share repurchase program to return up to $400 million USD in cash to shareholders.
In a letter to shareholders, Lightspeed founder and CEO Dax Dasilva indicated that profitable growth remains the firm’s top priority.
Lightspeed intends to hold a Capital Markets Day on March 26 to provide a more comprehensive update on its transformation plan and its operational and financial impact.
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Feature image courtesy Lightspeed Commerce.