Analysis - Revel Systems Acquisition by Shift4

Brutal Analysis of Acquisition

Analysis of acquisition of Revel by Shift4 — From Reforming Retail.

Excerpt

shift4 statement – click for full size

Mistruth #1

Shift4 offers payments and other technology to a range of industries, including restaurants. Its restaurant POS system, SkyTab, is used by operators of many large chains, including Burger King, Applebee’s and Denny’s.

Huh?

Here’s how Shift4’s communications will go:

Shift4 to Revel merchants: our bugs won’t be fixed and you won’t get the features you need. But we have better news: you now get to pay 5x market rates for payments so our CEO can space walk! Aren’t we generous?!

What’s interesting is that as of late, Shift4 is hiding that they cornhole restaurants (and no, we’re not talking about an innocuous game of tossing bean bags into a hole on a slanted piece of plywood).

Used to be that they broke out payment margins by vertical, but we have to go all the way back to Q3 2022 to get to the truth of the matter.

Let’s bring this image back up so all the Revel merchants can prophylactically start covering their rectums for what’s coming.

Summary

Shift4’s Acquisition of Revel: The article discusses Shift4’s purchase of Revel for $250M, which is considered a low amount compared to the high 9-figure offers Revel received in 2020/2021.
Misleading Claims: The author criticizes Shift4 for allegedly overstating the use of its SkyTab POS system by large chains and inflating R&D expenditure figures to show higher net income.
Payment Processing Concerns: Revel is accused of overcharging for payment processing, and the author warns that Shift4 may significantly increase rates for Revel merchants.
Technology Integration Doubts: The article expresses skepticism about Shift4’s ability to successfully integrate Revel’s technology into its SkyTab system, given the challenges faced by other companies in similar endeavors.

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