Par Technology Expands Foodservice Reach
NEW HARTFORD, N.Y. — Foodservice technology company PAR Technology Corp. entered into an agreement to acquire TASK Group for cash and PAR common stock at an implied value of approximately $206 million. This coincided with the company's completed acquisition of Stuzo Holdings for approximately $190 million paid in cash and stock.
[Read more: Stuzo Teams Up With Altria for Digital Trade Program Integration]
PAR anticipates both transactions will expand its cloud-based unified commerce software offerings into convenience stores and fuel retailers, as well as international markets. The deals are also financially accretive and should lead to sustainable profitability, according to the company.
TASK, an Australia-based global foodservice transaction platform, offers unified commerce solutions, including interactive customer engagement and seamless integration, tailored for major brands worldwide. The addition of TASK's offerings will allow PAR to serve an international market with a unified commerce approach from front-of-house to back-of-house.
"Our goal at PAR has been to be the largest food service technology company in the world. Adding TASK will provide us with a global platform to build upon this vision," said Savneet Singh, PAR CEO. "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."
The acquisition of Stuzo, a digital engagement software provider to convenience and fuel retailers, is intended to expand PAR's available market with a "best of breed" platform that is already profitable. It expands the company's reach to more than 25,000 sites.
[Read more of CSNews' coverage of Foodservice here]
PAR financed the cash consideration paid to Stuzo shareholders from the proceeds of its private placement of approximately $200 million of its common stock to funds and accounts advised by top-end financial firms, such as T. Rowe Price Investment Management Inc., ADW Capital and Voss Capital. J.P. Morgan Securities served as sole placement agent, while Gibson, Dunn & Crutcher LLP served as PAR's legal counsel on the acquisition and financing transactions.
The closing of the TASK acquisition is expected to occur in the third quarter of 2024, subject to TASK shareholder approval, Australian court approval, certain regulatory approvals and other customary closing conditions.
Founded more than 40 years ago, PAR Technology provides point-of-sale, digital ordering, loyalty and back-office software solutions, as well as hardware and drive-thru offerings, to more than 100,000 restaurant and retail customers in more than 110 countries throughout the world.