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April 9, 2021

Restaurant tech company PAR acquires Punchh for $500m

Restaurant tech company PAR Technology has acquired Punchh, which offers loyalty and guest engagement solutions, in a cash and stock deal worth $500m.

Restaurant tech company PAR Technology has acquired Punchh, which offers loyalty and guest engagement solutions, in a cash and stock deal worth $500m.

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With this acquisition, PAR becomes a unified commerce Cloud platform for enterprise restaurants.

It also strengthens the company’s presence in the restaurant industry with capabilities for integrated point-of-sale, back office, payment and guest engagement solutions.

PAR Technology CEO and president Savneet Singh said: “With the Punchh acquisition, we are building a platform that enables restaurants to scale quickly, own their path to innovation and take back their guest relationship.

“This eliminates the need for juggling disjointed vendors, developing cumbersome point-to-point integrations and relying on third-party dependencies. At the same time, Punchh advances our ability to provide customers with an end-to-end solution, from guest-to-kitchen, through one unified data source.”

Singh said that Punchh boasts a blue-chip roster of customers, industry-leading growth, 100%+ net dollar retention and very high customer NPS scores.

According to him, the combined companies would have generated $65m in run-rate ARR at the end of last year.

Commenting on the development, Punchh co-founder and president Shyam Rao said: “PAR’s point-of-sale and back-office solutions combined with our loyalty and engagement platform give customers an end-to-end solution for top-line growth, profitable guest relationships and operational efficiencies. We’re excited to join the PAR team and further our offerings to the hospitality industry.”

The cash consideration of the deal was financed by PAR through a combination of equity and debt.

This included proceeds from the sale of $160m of PAR common stock to PAR Act III, as well as funds and accounts advised by T Rowe Price Associates.

This is in addition to a $180m senior secured term loan under a credit agreement, with Owl Rock First Lien Master Fund as administrative and collateral agent.

Last month, New York-based Wix, a SaaS platform for creating and managing online presences for restaurants, acquired ordering technology provider SpeedETab.

Free Report
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Meet emerging digital demand in the foodservice industry

Global digital pressures are making waves across sectors. The foodservice industry is seeing particular impact as consumers change the way they operate. It is therefore essential to know how to navigate the challenges that digital is presenting to the industry and its consumers. GlobalData’s free report explores the market outlook for the global foodservice industry, with insights into how foodservice operators, brands, and their suppliers can meet changing demands. Key features in this report include:
  • An overview of dine-in, takeaway, and delivery forecasts up to 2026
  • Areas foodservice industry players should be focusing on for digital investment
  • Consumer insight into attitudes towards digital convenience
  • Challenges facing foodservice, in terms of investment and logical considerations
  • Key examples of top industry players
Adapt and stay on top. Download our free report now.
by GlobalData
Enter your details here to receive your free Report.

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