Lightspeed bought Upserve for $430 million, consisting of approximately $123 million in net cash and up to 5,895,365 subordinate voting shares in the capital of Lightspeed, which is subject to post-closing adjustments, the release stated.
The move will help Lightspeed bolster its position in the industry as more restaurants turn to the digital side of the business, the release stated.
The merger between the two companies will expedite product innovation and help advance the analytics-driven commerce platform of Lightspeed. The combination, according to the release, will offer a new competitive method for small restaurants to help navigate the complex new restaurant world brought on by the pandemic.
“Combining forces with Upserve is a strategic next-step in Lightspeed’s vision of providing the most advanced commerce platform to high-performing businesses around the world,” said Dax Dasilva, founder and CEO of Lightspeed, in the release. “We believe this acquisition will accelerate the product innovation that has enabled Lightspeed customers to tackle the greatest challenge to their industry in decades and will add exceptional leadership to our teams in anticipation of the economic recovery of the global hospitality industry.”
Upserve CEO Sheryl Hoskins said the two companies plan to help North American restaurateurs deliver improved guest experiences, according to the release.
Lightspeed was already seeing growth after its listing on the New York Stock Exchange, the release stated, along with its acquisition of cloud commerce provider ShopKeep.
The ShopKeep purchase happened in November, and Lightspeed agreed to it due to the pandemic’s digital shift in payments. Lightspeed agreed to pay around $440 million for the company, and the deal is expected to close by the end of the year, PYMNTS reported.
ShopKeep’s services are used by over 20,000 merchants, and the company has an annual gross transaction value of $7 billion. The acquisition purports to boost Lightspeed’s capabilities for complex inventory and multi-location sales.
“Our partnership sets the stage to help business owners navigate through challenging times, keep pace with rapid change and adapt quickly to meet the rising demands of today’s customers,” ShopKeep CEO Michael DeSimone said at the time.