Stripe Acquires Lemon Squeezy

Stripe has announced its acquisition of Lemon Squeezy, a payment processing startup, marking a strategic expansion for the payments giant.

• Deal Details: The acquisition terms were not disclosed. Lemon Squeezy, a four-year-old startup, will now be part of Stripe’s portfolio.

• Lemon Squeezy’s Role: As a merchant of record, Lemon Squeezy specializes in managing global sales tax for digital products, including handling legal processing and fees across different countries.

• Stripe’s Reaction: CEO Patrick Collison and CPO William Gaybrick expressed excitement, emphasizing the growth potential of Lemon Squeezy’s merchant of record capabilities.

• Lemon Squeezy’s Growth: Co-founder J.R. Farr revealed that despite multiple acquisition offers and a $50 million Series A term sheet, Lemon Squeezy chose Stripe. The startup hit $1 million in annual recurring revenue nine months after its 2021 launch.

With this acquisition, Stripe strengthens its position in the digital payments landscape, expanding its capabilities to better serve SaaS and software businesses globally.