Cantaloupe Inc. Acquires Three Square Market

$41 million deal grows the company’s micro-market presence
Cantaloupe Inc. acquires Three Square Market (32M)
Photograph courtesy of Cantaloupe Inc.

MALVERN, Pa. — Software company Cantaloupe Inc. has acquired Three Square Market (32M) for $41 million. 32M is a provider of software and self-service kiosk-based point-of-sale and payment solutions to the micro-market industry.

The acquisition provides Cantaloupe with a comprehensive line of self-service kiosks, smart coolers and cloud-based software, already integrated with its Seed Markets software platform. It also expands Cantaloupe’s micro-market presence by adding nearly 3,000 locations across North America and international markets, including the UK, Sweden and Romania.

“The acquisition of 32M, with its expansive portfolio of micro-market technology and broad geographic footprint, immediately accelerates two of our most important strategic growth priorities,” said Ravi Venkatesan, CEO of Cantaloupe Inc. “32M is already an integrated partner of our Seed Markets software platform, which will enable Cantaloupe to capture additional revenue synergies through cross-sell and upsell opportunities throughout our combined customer base. We are now well positioned as a best-in-class technology provider for the accelerating self-service commerce industry.”

The deal increases direct salesforce and customer service teams in both the U.S. and UK, and generates opportunities for revenue synergies through converting current 32M customers to SEED Markets software platform, as well as cross-selling 32M’s micro market technology to Cantaloupe’s existing food and beverage customers.

“Bringing 32M into Cantaloupe and gaining access to Cantaloupe’s 25,000-plus customer base, from small and medium businesses to large enterprises, is an exciting opportunity for us,” said Tony Danna, president of 32M. “We can now better leverage Cantaloupe’s Seed platform with our existing customers, both in the U.S. and other geographies, and expect to benefit from a combined salesforce to help our products reach more customers.”

Transaction details:

  • The purchase price of $41 million was funded with 90% cash and 10% stock. The stock consideration is subject to a two-year vesting schedule.
  • Cantaloupe has funded the cash portion with $25 million of debt from its existing credit facility and existing cash on hand.
  • 32M is estimated to produce $19 million of revenue with EBITDA margins of 20%+ for calendar year 2022 on a standalone basis.
  • Piper Sandler & Co. served as financial advisor and King & Spalding served as legal advisor to Cantaloupe.

Malvern, Pa.-based Cantaloupe Inc. is a software and payments company that provides end-to-end technology solutions for self-service commerce.

Three Square Market (32M), River Falls, Wis., is a leader in providing micro-market solutions to vending operators and provides one-stop shopping for everything micro-market related, including self-pay and convenience.

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