Mobile ordering specialist Appetize has been acquired by SpotOn, a software and payments company that provides solutions for restaurants and retail businesses.
The deal has been announced after SpotOn revealed yesterday (Monday) that it had raised $300m (£216m/€253m) in Series E funding, raising its valuation to $3.15bn.
The funding round was led by technology and software investor Andreessen Horowitz and also included DST Global, 01 Advisors, Dragoneer Investment Group, Franklin Templeton and Mubadala Investment Company.
New investors included Wellington Management and Coatue Management, with advisors Douglas Merritt, the chief executive of Splunk, and Mike Scarpelli, chief financial officer of Snowflake, also making individual investments.
The funding comes four months after SpotOn’s Series D funding round and increases the company’s value from $1.875bn to $3.15bn. SpotOn will use the funding to expand its reach in serving the middle market and the company said it will use its account executives to bring Appetize’s technology to thousands of stadiums, entertainment centres, colleges and universities.
Appetize launched in 2011 and its partners include New York’s Yankee Stadium, NASCAR and Major League Soccer team FC Cincinnati. SpotOn has 1,300 employees and maintains offices around the world, including San Francisco, Los Angeles, Chicago, Mexico City, Detroit, Atlanta, Denver and Krakow.
Matt Hyman, co-chief executive of SpotOn, said: “From our first meetings with Appetize, we knew they had great people and a great product, and the more we worked together it became clear that our two companies were stronger together.
“We are combining our complementary technologies, extending our market coverage and retaining our shared passion for great service and support for our clients. SpotOn is quickly becoming a part of everyday life for consumers across the country whenever they shop, dine, or visit a stadium or a college campus.”
Max Roper, chief executive at Appetize, who will continue running the business as part of SpotOn, added: “Appetize has built a truly special team and product that is trusted by some of the most iconic brands in hospitality, from Yankee Stadium to LSU to the San Diego Zoo. Likewise, SpotOn has earned the trust of tens of thousands of small businesses and independent restaurants with their technology and team.
“This acquisition enables our combined team to accelerate investments into our core product and client base, while expanding to fill a void in the mid-market space. By bringing the two companies together, businesses from a major league ballpark to a local clothing boutique will have access to modern, intuitive, cloud-based technology that delivers exceptional customer experiences from one trusted provider.”
The transaction is expected to close by mid-September.