![]() Lightspeed is quickly emerging as a world-leading commerce platform for SMBs and partnering with them to deliver data-based insights through a single digital hub was a natural choice.” Poised for a ReboundĪs Chauvet noted, Lightspeed appears to be positioning itself to clean up once the pandemic is in the rearview mirror. “Through its analytics-based POS and restaurant management solutions, Upserve has been delivering actionable insights to restaurateurs for over a decade. In the deal announcement, Upserve’s CEO said the following. We’re on the same planet…what’s very exciting about this is when you combine our Lightspeed K Series with their analytics engine and their modules, you really have probably the best platform out there.” “The good news here is, this is not Jupiter and Mars. “I think what’s very exciting to us is, actually, there’s a lot of complementarity between what we’re offering and what they are,” Chauvet said. Lightspeed seems particularly keen on acquiring Upserve’s analytics capabilities. ![]() The companies’ leaders tout their complementary technologies, with the goal of creating a platform that will power restaurants as they are likely to be configured in a post-pandemic world. Lightspeed’s leadership team says Upserve brings more than new locations into the fold. So the deal amounts to 10X last 12 months’ revenue. ![]() And $8 billion in gross transaction value (GTV) passed through its platform over the sale time span. Upserve generated $40 million in the 12 months ending September 30. This deal adds another 7,000 locations to Lightspeed’s roster. It’s an all-in-one restaurant management system that helps restaurants manage staff and handle marketing, bookings, and other tasks. Upserve, founded in 2009 as Swipely, is more than just a POS. And we all know that it’s going to come back to normal after the pandemic, and that’s where we’re hoping that we’re going to see an accelerator.” “But that is to our advantage, and that’s why we’ve managed to make these transactions at a good value. “Obviously, it’s been a bit choppy for restaurants…the GTV of Upserve has been a bit choppy,” he said. said as much on an investor call discussing the company’s recent acquisitions. Lightspeed’s President & Corporate Director Jean-Paul Chauvet Lightspeed POS Inc. It eliminates a rival and adds 20,000 locations, bringing Lightspeed’s total locations served to 100,000 worldwide.Īnd as noted, it’s a good time to scoop up rivals if you can. The rationale for the ShopKeep acquisition was pretty straightforward. ShopKeep got a similar deal, earning $145.2 million in cash and $295 million in stock. The Upserve deal involved $123 million in net cash, with the remaining $307 million in stock. Then, boom, shares are up 134% since February 28. The stock fell 10.6% through January and February. ![]() The pandemic has been good to Lightspeed’s share price. It’s notable that both the ShopKeep and Upserve deal were cash and stock deals, with both being much heavier on stock than cash. For example, helping restaurants adapt with order ahead technology or retailers with eCommerce. It’s done well through the pandemic by focusing on offering tools that help clients adapt to the new normal. Lightspeed, founded in 2005, is focused on three major verticals - golf, restaurants, and retail. This deal comes hot on the heels of Lightspeed’s acquisition of rival POS ShopKeep for $440 million. This week (a busy one for acquisitions and funding announcements), Lightspeed announced it will acquire restaurant-management solution Upserve in a $430 million cash and stock deal. With its stock price high, and assets relatively cheap, Lightspeed has made two acquisitions designed to upgrade its technology and expand its POS footprint. And the Canadian POS player Lightspeed has taken it to heart, in particular when applied to the battered restaurant space. Churchill once said, “Don’t let a crisis go to waste.” It’s a phrase that’s been dusted off in 2020.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |