Payments tech company Lightspeed Commerce conducting strategic review of business

Lightspeed Commerce Inc. is conducting a review of its business and operations including talks relating to a range of potential strategic alternatives.

The Montreal-based payments technology company made the comments late Wednesday after reports concerning a potential transaction involving the company.

Lightspeed shares on the Toronto Stock Exchange were up modestly on Thursday after jumping roughly 12 per cent midday Wednesday.

Lightspeed said it periodically undertakes a review of its business and operations with a view of realizing its full potential.

A strategic review is often seen by investors as a prelude to a sale by a company.

Lightspeed said its board of directors is committed to acting in the best interests of the company and its stakeholders. It added the company is not planning on disclosing developments from the review.

Company founder Dax Dasilva returned to the role of chief executive officer earlier this year and has been working to return the company to profitability.

Dasilva, who handed off the chief executive role to JP Chauvet in February 2022, was reappointed to the top job on a permanent basis in May.

Since then, Dasilva has been working to boost the company's bottom line in part by uncovering cost efficiencies. He also promised to accelerate software revenue growth and advance the adopting of Lightspeed’s financial services products.

Under his watch, the business cut about 280 jobs in April, shifted its sales summit from an in-person format to a virtual event and reduced how many days staff work from the company's offices in order to decrease bills associated with feeding employees.

Back in March, he said he was open to the possibility of taking the company private.

The company also signed a deal with Uber earlier this year, integrating Uber Direct and Uber Eats marketplace into its platform.

Last year, the company pivoted to target larger, more premium clients to drive sales.

This report by The Canadian Press was first published Sept. 26, 2024.