In a significant move to bolster its merchant of record services, global payments giant Stripe has acquired Lemon Squeezy, a four-year-old competitor. The terms of the deal have not been disclosed.
Lemon Squeezy specializes in calculating and paying global sales tax for digital products, taking care of legal processing and fees in every country. Its primary focus is on serving SaaS and software businesses.
Stripe CEO Patrick Collison announced the acquisition on X, expressing excitement about scaling merchant of record selling. Chief Product Officer Will Gaybrick also shared his enthusiasm, stating that many users were requesting a merchant of record feature and praising Lemon Squeezy’s excellent product.
JR Farr, co-founder and CEO of Lemon Squeezy, mentioned in a blog post that despite receiving numerous acquisition offers and Series A term sheets, his 13-person company decided to join forces with Stripe. The startup had turned down a $50 million Series A term sheet, demonstrating their confidence and belief in the partnership with Stripe.
This strategic acquisition aligns with Stripe’s mission to simplify online transactions for businesses across the globe. By integrating Lemon Squeezy’s expertise and technology, Stripe aims to provide even more comprehensive merchant of record services to empower businesses to launch and grow successfully.
With the acquisition finalized, Stripe and Lemon Squeezy will collaborate closely to enhance their offerings and help businesses navigate the complexities of global sales tax compliance effectively.