Stripe, the payments giant, has made another acquisition, this time purchasing Lemon Squeezy, a competitor in the merchant of record (MoR) space. Lemon Squeezy specializes in calculating and paying global sales tax for digital products, making it a valuable asset for SaaS and software businesses. The terms of the deal were not disclosed.
Stripe CEO Patrick Collison announced the acquisition on X, expressing his excitement about scaling MoR selling with Lemon Squeezy. Chief Product Officer Will Gaybrick echoed this sentiment, stating that many users had requested a MoR product, and Lemon Squeezy had built an excellent one that they were eager to work with.
Lemon Squeezy’s co-founder and CEO, JR Farr, explained in a blog post that the company had received numerous offers and term sheets from investors since its public launch in 2021. He mentioned turning down a $50 million Series A term sheet, emphasizing that they knew they had something special and were looking for the right partner to take it to the next level. Farr expressed his pride in finding that partner in Stripe and achieving acquisition success in under three years.
Although Lemon Squeezy’s current revenue figures were not disclosed, Farr revealed that the company had surpassed $1 million in annual recurring revenue just nine months after its public launch. He also mentioned that Lemon Squeezy had been processing payments on Stripe since its inception, indicating a pre-existing synergy between the two companies.
This acquisition is not the first for Stripe this year. In March, the company completed an “acqui-hire” of Supaglue, a four-person team specializing in user-facing integrations. Last summer, Stripe also acquired Okay, a startup focused on low-code analytics software for engineering leaders. These acquisitions demonstrate Stripe’s commitment to expanding its offerings and enhancing its capabilities in various areas of the fintech industry.
By acquiring Lemon Squeezy, Stripe strengthens its position in the MoR market and can better support businesses in navigating global sales tax requirements. This acquisition aligns with Stripe’s mission to simplify the complexities of online payments and provide innovative solutions for businesses of all sizes. With its history of successful acquisitions and strategic partnerships, Stripe continues to solidify its position as a leader in the payments industry.
