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The payments company Lemon Squeezy announced Friday (July 26) that it has been acquired by competitor and industry giant Stripe for an undisclosed amount.

In an announcement, Lemon Squeezy co-founder and CEO JR Farr said that the startup received "many acquisition offers and (Series A) term sheets," but fell short of revealing how much funding was raised.

TechCrunch reported that Lemon Squeezy was a platform calculating and paying global sales tax for digital products, as well as handling legal processing and fees anywhere in the world for SaaS and software businesses.

Stripe Pleased with Lemon Squeezy's Acquisition

In response to the announcement, Stripe CEO Patrick Collison wrote on X, formerly Twitter, that the acquisition would give the company the ability to scale merchant of record (MoR) selling "in a big way," while CPO Will Gaybrick added that Lemon Squeezy "built an excellent MoR product" that they were pleased to have its team on board with Stripe.

Meanwhile, Farr said that his company surpassed $1 million in annual recurring revenue nine months after its public launch in 2021, but did not reveal the current revenue figures. He added that Lemon Squeezy has been processing payments on Stripe since the beginning of the business.

Earlier this year, Stripe acquired the open source developer startup Supaglue and hired its four-person team, also for an undisclosed amount.

Tags

Mergers, Acquisitions, Mergers and acquisitions, M&A, Tax, Sales tax