The deal with SpotOn, a San Francisco-based payment software company, is expected to close this month.
Appetize Chief Executive Max Roper will continue running the business as a division of SpotOn, and Appetize’s offices in Playa Vista will stay open.
“SpotOn has earned the trust of tens of thousands of small businesses and independent restaurants with their technology and team,” Roper said in a statement.
Appetize’s 300 employees will join Spot-On, and the combined company will have 1,600 employees, including 500 working in product and technology.
The combined company will also boast a roster of heavy-hitter clients including Live Nation Entertainment Inc., Louisiana State University, Dodger Stadium and Urban Air Trampoline and Adventure Parks.
Founded in 2011, Appetize offers point-of-sale software and devices to food and beverage clients that supply sports and entertainment venues, theme parks and college campuses. Its products include touchless payment and mobile ordering systems as well as self-service kiosks and handheld devices.
According to TechCrunch, Appetize works with 65% of all major league sports stadiums, including Yankee Stadium. It also works with the San Diego Zoo.
“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,” Roper said.
SpotOn said the acquisition would bring “enterprise-scale” software capabilities to its small business clients and customer engagement tools, such as loyalty and marketing products, to its larger clients.
The Appetize acquisition will be funded with a $300 million Series E raise led by Andreessen Horowitz. The round follows SpotOn’s $125 million Series D raise in May and gives SpotOn a valuation of $3.15 billion.
“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,” Matt Hyman, co-chief executive of SpotOn, said in a statement. “We are combining our complementary technologies, extending our market coverage and retaining our shared passion for great service and support for our clients.”
SpotOn operates in a similar market as Appetize. Founded in 2017, SpotOn offers a wide array of digital services to retail and restaurant clients, including marketing, website development, ecommerce, reservations and point-of-sale solutions.
Competitors in this space include Sunnyvale-based Clover Network Inc. and San Francisco-based Square Inc. The global point-of-sale terminal industry is expected to reach a market value of $34.4 billion by 2026.
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