US paytech Cantaloupe buys Three Square Market for $41m
US-based digital payments and software company Cantaloupe has acquired micro-market technology provider Three Square Market (32M) for $41 million.
Cantaloupe snaps up 32M for $41m
Cantaloupe provides end-to-end tech solutions for the unattended retail market. Known as micro-markets, these stores act as walk-in vending machines, utilising self-checkout technology to expand retail into locations that require unattended payment capabilities.
32M provides cloud-based software and self-service kiosk-based point of sale (POS) and payment solutions to the micro-market sector.
Cantaloupe says the deal will enable it to offer a “full range” of tech capabilities for the “fast-growing” micro-market industry.
The acquisition will also expand Cantaloupe’s footprint through the addition of 3,000 locations across North America and international markets including the UK, Sweden and Romania.
Cantaloupe CEO Ravi Venkatesan says: “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.”
Venkatesan adds the deal will ““accelerate our organic top line growth while also expanding our margins”.
Tony Danna, 32M president, says the acquisition will give 32M access to Cantaloupe’s more than 25,000-strong customer base, “from small and medium businesses to large enterprises”.
“We can now better leverage Cantaloupe’s Seed platform with our existing customers, both in the US and other geographies,” Danna adds.
The acquisition was funded with 90% cash and 10% stock. Cantaloupe has funded the cash portion with $25 million of debt from its existing credit facility and existing cash on hand.
