Foodservice technology company PAR Technology Corp. has acquired convenience-store and retail fuel software provider Stuzo Holdings LLC for approximately $190 million paid in cash and stock. PAR also has entered into an agreement to acquire Australia-based foodservice transaction platform TASK Group for cash and PAR common stock for a value of approximately $206 million.
Stuzo, a digital engagement software provider for convenience and fuel retailers, offers the Open Commerce Platform that consists of Activate for loyalty, Transact for contactless commerce, Experience for cross-channel customer experiences and Retailer Connect for corporate-to-retailer program management.
This acquisition strengthens PAR’s business strategy to expand its market by addressing the expanding convenience foodservice market. With the acquisition of Philadelphia-based Stuzo, PAR Technology now serves more than 25,000 sites.
PAR is expanding its business across the globe and enhancing its product and service offerings for a wider range of the foodservice and fuel retail industry, Savneet Singh, CEO of PAR Technology, New Hartford, New York. “Over the past five years, we have evolved our capabilities to include point-of-sale, loyalty, backoffice, payment transaction services and digital ordering. The transactions announced today further our vision and help us to offer a more comprehensive set of best-in-class solutions for global brands,” he said.
PAR Technology financed the cash consideration paid to Stuzo shareholders from the proceeds of its private placement of approximately $200 million of the company’s common stock to funds and accounts advised by T. Rowe Price Investment Management Inc., ADW Capital, Voss Capital, Greenhaven Road Capital, Jane Street, Progeny 3, Fund 1 Investments LLC, Newtyn Capital, Ghisallo Capital Management and Burkehill Global Management. J.P. Morgan Securities LLC served as sole placement agent in connection with the private placement. Gibson, Dunn & Crutcher LLP served as legal counsel to PAR Technology in connection with the acquisition and financing transactions.
Sydney, Australia-based TASK Software is a foodservice transaction platform that offers international unified commerce solutions, including interactive customer engagement and seamless integration, tailored for major brands worldwide. Brands that use the platform include Starbucks and Guzman Y Gomez. McDonald’s uses its loyalty customer engagement platform in 65 markets. With the addition of TASK, PAR will be able to serve the top enterprise foodservice brands across the globe with a unified commerce approach from front-of-house to back-of-house, it said.
“Our goal at PAR has been to be the largest foodservice technology company in the world. Adding TASK will provide us with a global platform to build upon this vision,” said Singh. “TASK not only broadens our reach beyond the United States and has a strong cash flow profile, but also has the potential to bring premier global brands into the PAR fold and accelerate our future growth.”
PAR Technology expects the acquisition of Stuzo and TASK to add more than $80 million of annual recurring revenue and more than $20 million of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to the company’s business, it said. “We expect to increase our [annual recurring revenue] by well over 50% while adding meaningful cashflow and unlocking significant new markets that ensure faster future growth,” Singh said.
The companies expect the closing of the TASK acquisition to occur in third-quarter 2024, subject to TASK shareholder approval, Australian court approval, certain regulatory approvals and other customary closing conditions.
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