Appetize Acquisition: Key Details, Impact, and What Comes Next

SpotOn's acquisition of Appetize for $415 million marks a significant move in the payment software industry. This strategic purchase enhances SpotOn's capabilities, merging Appetize's point-of-sale technology with SpotOn's digital services. The combined entity aims to offer a comprehensive platform for both small businesses and large enterprises, positioning itself as a formidable competitor in the market.

What Is Appetize?

Founded in 2011, Appetize offers next-gen point-of-sale (POS) systems, mobile ordering and payments, QR code ordering, self-service kiosks, and reporting and analytics tools. Its unique selling points include a comprehensive end-to-end solution that unifies all revenue streams across venues, state-of-the-art security with EMV and PCI-validated P2PE, and competitive pricing with free terminals and waived fees. Appetize is widely adopted, serving over 50% of major league venues and NCAA arenas.

Who Acquired Appetize?

SpotOn is a prominent provider in the point-of-sale (POS) systems and business software solutions industry. The company offers a range of products, including POS systems, handheld devices, labor and scheduling software, online ordering and delivery solutions, and payment processing tools. SpotOn is known for its flexibility and commitment to helping businesses succeed through advanced technology and personalized support. The company holds a significant market position, trusted by numerous local businesses for its reliable and adaptable solutions.

When Was Appetize Acquired?

SpotOn acquired Appetize on September 20, 2021. This acquisition occurred during a period of significant consolidation in the payments industry, with companies expanding their market presence and technological capabilities. The timing also coincided with increased demand for digital solutions due to the COVID-19 pandemic, making the acquisition a strategic move to enhance SpotOn's offerings and market reach.

Why Was Appetize Acquired?

• Market Expansion: The acquisition allows SpotOn to extend its market coverage by combining its services with those of Appetize. This includes expanding their client base to major league sports stadiums, theme parks, and college campuses, as well as small businesses and independent restaurants. SpotOn is positioned to rapidly expand its reach to serve the middle market, bringing Appetize’s technology to thousands of regional entertainment centers, stadiums, colleges, and universities.
• Technology Integration: The combined company will integrate Appetize's point-of-sale software and devices, which include touchless payment and mobile ordering systems, self-service kiosks, and handheld devices, with SpotOn's existing digital services such as marketing, website development, ecommerce, reservations, and point-of-sale solutions. This integration aims to provide a comprehensive, cloud-based technology platform for various business clients. The acquisition will enable SpotOn to bring enterprise-scale software capabilities to small business clients and customer engagement technology such as loyalty and marketing products to enterprise customers.
• Competitive Advantage: The acquisition positions the combined company to offer a unique blend of enterprise-scale software capabilities and customer engagement tools, such as loyalty and marketing products, to both small and large clients. This strategic move is expected to enhance customer experiences and provide a competitive edge over other players in the point-of-sale terminal industry, such as Clover Network Inc. and Square Inc. SpotOn’s rapid innovation and industry-leading customer service, combined with Appetize’s trusted technology and team, position the company to deliver exceptional customer experiences from one trusted provider.

Acquisition Terms

• Acquisition Price: $415 million
• Payment Method: Cash and stock
• Key Conditions or Agreements:
  • The deal is expected to close within the month.
  • Appetize Chief Executive Max Roper will continue running the business as a division of SpotOn.
  • Appetize’s offices in Playa Vista will remain open.
  • Appetize’s 300 employees will join SpotOn, resulting in a combined workforce of 1,600 employees.
  • Appetize will go to market as SpotOn and will work to grow its client base.
  • The acquisition aims to bring "enterprise-scale" software capabilities to SpotOn's small business clients and customer engagement tools to its larger clients.

Impact on Appetize

The acquisition of Appetize by SpotOn has led to notable changes in operations and management. Appetize CEO Max Roper continues to lead the business as a division of SpotOn, ensuring continuity in leadership. The Playa Vista offices remain operational, and the integration has resulted in a combined workforce of 1,600 employees, including over 500 in product and technology roles. This merger has allowed SpotOn to leverage Appetize's expertise in mobile ordering and contactless payments, enhancing its product offerings and expanding its reach into the enterprise space, including sports and entertainment venues.

Employee reactions have been generally positive, with many expressing enthusiasm about the growth opportunities the acquisition brings. Customers, particularly those in the sports and entertainment sectors, are expected to benefit from the enhanced services and technology integration. The combined entity aims to offer a comprehensive suite of tools, from payment processing to marketing and analytics, providing a seamless experience for both small businesses and large enterprises. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.