The deal allows PAR to become a unified commerce cloud platform for enterprise restaurants
US-based restaurant software company PAR Technology has acquired loyalty and guest engagement solutions provider Punchh for about $500m.
The acquisition enables PAR to become a unified commerce cloud platform for enterprise restaurants.
Currently, PRA’s point-of-sale hardware and SaaS software is used by more than 100,000 restaurants in more than 110 countries.
In addition, the deal positions the company as a provider of integrated point-of-sale, back office, payment and guest engagement solutions.
PAR Technology CEO and president Savneet Singh said: “In our view, Punchh is the pre-eminent loyalty and CRM SaaS provider to enterprise restaurants.
“They boast a blue-chip roster of customers, industry-leading growth, 100%+ net dollar retention and very high customer NPS scores. Punchh’s highly experienced team are among the industry’s best – we’re beyond excited to have them join us on our ambitious journey.
“I am also pleased to report that the combined companies, on a pro-forma basis, at the end of 2020, would have generated $65 million in run-rate ARR, while maintaining our growth and net dollar retention.”
PAR financed the cash portion of the acquisition cost through a combination of equity and debt.
Goldman Sachs acted as financial advisor to PAR, while Gibson, Dunn & Crutcher served as its legal counsel.
Based in Silicon Valley, California, Punchh provides solutions for restaurant, retail, and convenience store brands.
The company offers a fully-integrated AI-powered loyalty solution that unifies customer data and informs effective campaigns.
For convenience store operators, Punchh offers tools by leveraging real-time data to enable them to deliver personalised offers and targeted campaigns to increase revenue and overall customer lifetime loyalty.
Punchh co-founder and president Shyam Rao said: “With its Brink POS, PAR has been a Punchh partner for many years. We’ve gotten to know them while jointly servicing customers and have always been impressed with their focus on their customer’s success.
“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.”