PAR Technology Expands Global Reach with Stuzo Acquisition

PAR Technology Corporation has made significant strides towards expanding its global presence and enhancing its unified commerce offerings with the recent acquisitions of Task Group Holdings Limited (ASX: TASK) and Stuzo Holdings, LLC.

The acquisition of Task Group for an implied value of approximately $206 million and the completion of the acquisition of Stuzo Holdings for approximately $190 million in cash and stock will greatly contribute to PAR's strategic growth. These acquisitions are expected to be financially accretive and will advance PAR's path to sustainable profitability.

With the addition of Task Group, PAR will now be able to serve top enterprise foodservice brands across the globe with a unified commerce approach, expanding its reach beyond the United States. Task's transaction management platform is the platform of choice for successful foodservice brands such as Starbucks and Guzman y Gomez, while its loyalty customer engagement platform is used by McDonald's in 65 markets.

Savneet Singh, CEO of PAR Technology, expressed that the acquisition of Task will provide them with a global platform to build upon their vision of becoming the largest foodservice technology company in the world. He also highlighted that Task has a strong cash flow profile and the potential to bring premier global brands into the PAR fold, accelerating their future growth.

Furthermore, the acquisition of Stuzo Holdings positions PAR as a leader in technology for convenience and fuel retailers, with over 25,000 sites and substantial opportunities for innovation in the c-store industry. Stuzo's open commerce platform empowers c-stores to drive customer lifetime value and gain a larger share of the customer wallet.

Mr. Singh emphasized that these transactions are expected to add over $80 million of annual recurring revenue (ARR) and over $20 million of adjusted EBITDA to PAR's business, based on their trailing twelve-month actuals. This represents a significant increase in ARR and meaningful cash flow, unlocking new markets for faster future growth.

The financing for the cash consideration paid to Stuzo shareholders was facilitated through a private placement of approximately $200 million of the company’s common stock to funds and accounts advised by several investment management firms.

As a result of these announcements, the company's shares have moved -1.4% on the market, and are now trading at a price of $42.8. Check out the company's full 8-K submission here.

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