Lightspeed Commerce has announced the sale of its non-core Upserve U.S. hospitality product line to Skyview Equity for total cash consideration of up to $81 million USD, with $37 million subject to an earnout tied to performance targets over 24 months. The divestiture is consistent with Lightspeed’s strategy to streamline its portfolio and concentrate on its two core growth engines: retail in North America and hospitality in Europe.
The divested operations contributed approximately $140 million in total revenue, $26 million in gross profit, and $5 billion in gross transaction volume during fiscal 2026, encompassing roughly 3,200 US hospitality customer locations and approximately 70 employees who are expected to join Skyview in connection with the transaction. Of the $44 million in fixed cash consideration, $20 million was paid at closing, with the remaining balance payable within 90 days. Stifel Nicolaus Canada served as Lightspeed’s financial advisor during the process.
Despite the revenue contribution of the divested business, Lightspeed expects the transaction to meaningfully improve both revenue growth and gross profit growth trajectories going forward. After divesting the operations, approximately 75% of the company’s fiscal 2026 revenue was generated by its designated growth engines. The company expects to deliver fiscal fourth-quarter and full-year fiscal 2026 revenue and gross profit ahead of its previously established outlook, with fiscal 2027 Adjusted EBITDA forecast between $75 million and $95 million.
The divestiture also enhances Lightspeed’s flexibility to allocate capital to priorities, including share repurchases, expanding its merchant cash advance program, and investing in product and go-to-market initiatives. The company has approximately $200 million remaining under its board authorization to return up to $400 million to shareholders via buybacks. Lightspeed is scheduled to report full fiscal 2026 results on May 21, 2026, at which point additional details on the divestiture’s impact on the company’s three-year financial outlook will be provided.
KEY QUOTES:
“This transaction is another step towards focusing Lightspeed on the markets where we have the strongest right to win.”
Dax Dasilva, Founder and Chief Executive Officer, Lightspeed Commerce
“Skyview brings deep experience in software and payments — and a real commitment to leveraging the latest AI capabilities to help restaurants operate better and perform stronger. Upserve has earned a remarkable reputation with independent restaurants, and this is the moment to build boldly on that foundation.”
Bob Bellack, Interim CEO, Upserve and Managing Director, Skyview Equity
