The acquisition better positions PAR as a cloud platform offering integrated point-of-sale technology alongside back office, payment and guest engagement solutions for enterprise restaurants, the company said in a press release.
According to Savneet Singh, PAR Technology CEO and president, restaurants are struggling to navigate the volume of new software applications and complex integrations.
“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,” Singh said.
“This eliminates the need for juggling disjointed vendors, developing cumbersome point-to-point integrations, and relying on 3rd 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.”
“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,” said Shyam Rao, co-founder and president of Punchh.
“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.”
PAR is purchasing Punchh for approximately $500 million in cash and shares of PAR common stock to Punchh stockholders, according to the announcement. The company is funding the cash considerations through a combination of equity and debt, it said. The equity was raised through the sale of common stock to PAR Act III, LLC and to funds and accounts advised by T. Rowe Price Associates. The company also obtained a $180 million loan under a credit agreement.
Keith Pascal, Act III partner, is joining PAR’s board of directors, and Ron Shaich, Act III managing partner and founder of Panera Bread, is taking a Board Observer seat.
“We are thrilled to join this journey with PAR and Punchh. As a founder and long-time CEO of a large restaurant company, I understand first-hand the struggles of trying to power a large enterprise by gluing together disparate technologies from multiple vendors which results in silos of data, increased management costs and barriers to agile innovation,” Shaich said.
“However, those restaurant brands that can create a differentiated guest experience, aided by seamless omnichannel technology and a superior understanding of their guests’ preferences and behaviors, will be best positioned to win in the ever increasingly competitive restaurant marketplace. I believe PAR’s vision of a unified commerce cloud will enable more restaurant enterprises to compete effectively and efficiently in the digital arms race.”