Par Technology (PAR) - Get PAR Technology Corporation Report said on Thursday it paid $500 million of cash and stock to acquire Punchh, the San Mateo, Calif., producer of software for restaurant loyalty programs.
The deal for Punchh would position the New Hartford, N.Y., restaurant-industry hardware and software supplier as a “unified commerce cloud platform for enterprise restaurants,” Par Technology said in a statement.
At last check Par Technology shares were trading 26% at $78.27. In early March the stock had touched a 52-week high above $90.
PAR would be able to provide "integrated point-of-sale, back-office, payment and guest-engagement solutions,” it added.
Par currently provides solutions to more than 100,000 restaurants, Dow Jones reports.
“With the Punchh acquisition, we are building a platform that enables restaurants to scale quickly, own their path to innovation, and take back their guest relationship,” Par President and Chief Executive Savneet Singh said in a statement.
“This eliminates the need for juggling disjointed vendors, developing cumbersome point-to-point integrations, and relying on third-party dependencies,” he added.
“At the same time, Punchh advances our ability to provide customers with an end-to-end solution, from guest-to-kitchen, through one unified data source.”
PAR financed the acquisition with equity and debt.
It sold “$160 million in common shares to a venture managed by Ron Shaich, the founder of the Panera Bread chain, as well as to funds and accounts advised by T. Rowe Price Associates,” Dow Jones reported.
Shaich will sit as an observer on Par’s board. Keith Pascal, who works with Shaich's venture, will join the board.