Lightspeed shares jumped 13% on Wednesday after reports that the Montreal-based technology solutions provider has hired U.S. bank JP Morgan to help it review strategic alternatives, including a sale of the business.
JP Morgan’s experts are expected to solicit interest from potential buyers, such as private investment firms, Reuters said, citing people familiar with the matter.
The talks are only at the beginning and there is no guarantee that an agreement will be reached, it said.
Lightspeed management was not immediately available for comment.
Lightspeed founder and CEO Dax Dasilva had told The Press in March that the purchase offer accepted this year by the Longueuil company mdf commerce and the strategic review conducted by the Montreal fintech Nuvei did not leave him “indifferent”.
It’s interesting. It makes you think. When you look at what’s happening, you wonder if closing the capital would be a better solution. We’re always open to those discussions.
Dax Dasilva, founder and CEO of Lightspeed
Dax Dasilva returned to Lightspeed as CEO this year after replacing his friend JP Chauvet in mid-February. JP Chauvet had been CEO since February 2022.
Lightspeed shares gained 13% on Wednesday to close at $21.15 on the Toronto Stock Exchange.
After initially listing at $16 five years ago, Lightspeed’s stock appreciated to $165 before falling back to its current level.
The Caisse de dépôt et placement du Québec is Lightspeed’s largest shareholder with a 16% stake.