In light of recent discussions surrounding a potential private equity acquisition of Nuvei Corp., Dax Dasilva, the head of Lightspeed Commerce Inc. based in Canada, has expressed openness to considering a similar move for his own company.
Reflecting on Nuvei’s contemplation of the benefits of being a private entity, Dasilva disclosed, “People have made the same comment to me about Lightspeed.” While he maintains confidence in Lightspeed’s position in the stock market, Dasilva acknowledges the ongoing dialogue about the potential advantages of going private, stating, “We are always open to these discussions.”
Following these remarks, Lightspeed’s shares surged by 5% to C$19.01 in Toronto, reflecting the company’s market capitalization of C$2.9 billion ($2.1 billion).
Established in Montreal, Lightspeed specializes in point-of-sale software utilized by various businesses, including restaurants. The company went public five years ago, experiencing a significant surge in its stock price during the 2021 tech stock frenzy, peaking at over C$155. However, a negative report from short seller Spruce Point Capital Management in September of that year led to a decline in shares from which Lightspeed has yet to fully recover.
Meanwhile, Nuvei, also headquartered in Montreal, has announced a review of expressions of interest for potential transactions following reports of private equity firm Advent International’s discussions regarding a takeover.
The volatility in the market has prompted considerations for strategic decisions among tech companies like Lightspeed. Earlier in February, the company’s then-CEO, JP Chauvet, hinted at potential acquisitions during a conference call, emphasizing a focus on growth over profitability. These remarks contributed to a 24% drop in shares in a single day, highlighting the delicate balance between growth ambitions and market dynamics for such firms.
