To Enhance Dining Platform, American Express Enters Agreement to Acquire Tock from Squarespace; Also Agrees to Acquire Rooam

Rhea-AI Summary

American Express (NYSE: AXP) announced the acquisition of Tock, a reservation and event management technology provider, from Squarespace (NYSE: SQSP), and Rooam, a mobile payments and ordering technology company. These acquisitions aim to enhance Amex's dining platform, expanding its suite of digital tools for restaurants and merchants. With Tock's network of 7,000 restaurants and Rooam's integration capabilities, Amex will offer more personalized hospitality, pre-paid experiences, and convenient payment methods. Amex will acquire Tock for $400M, while the financial details for Rooam remain undisclosed. These deals are part of Amex's strategy to support the growth of the dining and entertainment industries.

Positive

• Amex will acquire Tock for $400M, expanding its suite of digital tools for restaurants.
• Acquisitions aim to enhance Amex's dining platform, benefiting both merchants and customers.
• Tock's network includes 7,000 restaurants, wineries, and bookable venues.
• Rooam's integration will add new capabilities to Resy, enhancing mobile ordering and payment.

Negative

• Details of the Rooam acquisition are not disclosed, potentially creating uncertainty.
• The transactions are subject to regulatory approval, which may delay the process.

Financial Analyst

American Express' (AXP) acquisition of Tock and Rooam demonstrates its strategic focus on expanding its influence in the dining and entertainment sectors. By investing $400M in Tock and enhancing its mobile payment and ordering capabilities through Rooam, American Express aims to reinforce its value proposition in one of its largest Card Member spending categories.

Short-term implications: This move is expected to drive immediate revenue growth by capitalizing on the $100 billion volume in dining expenditure by American Express Card Members. The integration of Tock and Rooam will likely lead to increased engagement from high-spending customers and offer more personalized experiences, which can enhance brand loyalty.

Long-term implications: The broadening of American Express' digital tools will likely bolster its competitive edge in the hospitality industry, aligning with its strategy to offer comprehensive solutions to its merchants. However, it will be important to monitor how efficiently these new assets are integrated and how they contribute to long-term revenue growth and profitability.

While this acquisition seems promising, investors should remain cognizant of the potential risks, including integration challenges and the broader economic impacts on the dining and entertainment sectors.

Tech Expert

The acquisitions of Tock and Rooam represent a strategic enhancement of American Express' technological capabilities in the hospitality industry. Tock's reservation and event management technology and Rooam's mobile payment solutions address key operational needs for restaurants and entertainment venues, such as streamlining reservations, improving customer payment experiences and integrating various hospitality-related systems.

From a technological perspective, these acquisitions will allow American Express to offer a more integrated and seamless service platform. The inclusion of Rooam's products like Rooam Pay and Rooam Tab will significantly improve the user experience by simplifying payment processes and enhancing operational efficiency for merchants. These advancements could drive higher merchant satisfaction and attract new business relationships.

However, the success of these integrations depends heavily on how well American Express can merge these technologies with its existing infrastructure. Ensuring a smooth transition and maintaining the quality of service will be essential in leveraging these acquisitions for maximum benefit.

Market Research Analyst

American Express' decision to acquire Tock and Rooam is a strategic maneuver to fortify its market position in the highly competitive dining and entertainment sectors. By expanding its suite of digital tools, American Express aims to meet the evolving demands of both merchants and consumers, who increasingly seek convenience and enhanced digital experiences.

Market potential: The dining and entertainment market is vast, with significant room for technological innovation. American Express' focus on providing premium services to high-spending customers through advanced reservation systems and seamless payment solutions positions it well to capture a larger market share.

Competitive landscape: These acquisitions could give American Express a distinct advantage over competitors who have yet to offer such comprehensive solutions. However, it must continue to innovate to stay ahead of the curve, especially given the rapid pace of technological advancements and changing consumer preferences in this sector.

In summary, this move appears well-aligned with market trends and consumer demands, which could bode well for American Express' growth prospects. Investors should watch how these strategic additions translate into market performance over time.

NEW YORK--(BUSINESS WIRE)-- American Express (NYSE: AXP) today announced an agreement to acquire Tock, a reservation, table, and event management technology provider, from Squarespace (NYSE: SQSP), the design-driven platform helping entrepreneurs build brands and businesses online. The Company also announced an agreement to acquire Rooam, a technology company that powers mobile payments, ordering and integrations with point of sale, marketing and loyalty systems used by restaurants and entertainment venues. The acquisitions build on American Express’ previous investments in dining, travel, and entertainment, expanding the company’s suite of digital tools for restaurants and merchants to better serve their customers, the number of restaurants offered through American Express channels, and the ways Card Members access experiences.

Restaurants are one of American Express’ largest Card Member spending categories within Travel and Entertainment. (Photo: Business Wire)

“Restaurants are one of our largest Card Member spending categories within Travel and Entertainment, with $100 billion in volume in 2023,” said Howard Grosfield, President, U.S. Consumer Services, American Express. “We’ve been offering unique dining benefits, exclusive access, and special experiences to our Card Members for years through Resy and Global Dining Access by Resy. Now, we can connect even more premium customers with the most exciting restaurants, while providing merchants and restaurants more technology to help their businesses thrive. We will be able to offer restaurants the tools to deliver more personalized hospitality, facilitate pre-paid experiences like tasting menus, and provide more convenient ways for customers to pay the bill.”

“From our acquisition of Resy in July 2019 through year-end 2023, we’ve increased the number of engaged diners by 3x, increased the number of restaurants by 5.4x and driven solid growth in diners seated¹. Restaurants value access to our premium, high-spending customer base and to Resy’s technology to help run their businesses,” said Pablo Rivero, Vice President, American Express Global Dining, CEO Resy. “These acquisitions will enhance our dining platform and help us continue to support the industry’s growth.”

Tock, launched in Chicago in 2014 and acquired by Squarespace in 2021, provides reservation, table management and event ticketing tools to approximately 7,000 restaurants, wineries, and other bookable venues. Adding Tock’s network of restaurants and innovative suite of products will enhance American Express’ dining platform, delivering even more unforgettable experiences for diners and access to highly sought-after reservations in one destination. As part of the deal, Squarespace and American Express will also partner to deliver additional value for small businesses that use American Express Cards through the Amex Offers program (digital card-linked offers) and Card Member benefits.

“American Express has demonstrated its commitment to the hospitality industry, and we believe that as part of American Express, Tock will deliver enhanced value to our customers through access to a broad network of diners,” said Matthew Tucker, Head of Tock. “We appreciate American Express’ recognition of Tock’s exceptional products, experienced team, and our first-rate customer base. We look forward to working together to broaden American Express’ world class dining program and are excited by the tremendous opportunity to continue to innovate on behalf of our customers as part of American Express. We are also deeply appreciative of Squarespace’s support of Tock’s vision and its commitment to the business over the past three years.”

“Since adding Tock as a Squarespace company in 2021, we have been honored to partner together to serve the hospitality industry,” said Anthony Casalena, Founder and CEO of Squarespace. “We are thankful for Matt’s leadership and the team’s emphasis on innovative products and world class customer care. Our shared commitment to help small businesses grow has been core to our partnership and we believe the Tock business will continue to thrive in its exciting next chapter with American Express.”

Rooam, founded in 2015, has become a key technology partner for customers ranging from restaurants and bars to stadiums and arenas. The company’s integrations will add new capabilities to the Resy dashboard that help restaurants personalize marketing, drive loyalty, and turn tables faster. Adding Rooam’s proprietary products – Rooam Pay, Rooam Tab, and Rooam Order – will enhance Amex’s mobile ordering and payment capabilities as American Express continues to deepen its sports, music, and entertainment partnerships.

“We built Rooam to make it easy for restaurants and entertainment venues to use major point of sale providers with other key technology systems crucial to hospitality operations. Combining our capabilities with American Express and Resy will power payments, marketing, and loyalty programs for hospitality providers, bringing together the digital tools they need in one platform,” said Junaid Shams, co-founder and CEO of Rooam.

The transactions are subject to customary closing conditions, including regulatory approval for the Tock acquisition. American Express will acquire Tock for $400M in cash, subject to customary adjustments. Financial details of the Rooam acquisition are not being disclosed.

ABOUT AMERICAN EXPRESS

American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com and connect with us on facebook.com/americanexpress, instagram.com/americanexpress, linkedin.com/company/american-express, X.com/americanexpress, and youtube.com/americanexpress.

Key links to products, services and corporate sustainability information: personal cards, business cards and services, travel services, gift cards, prepaid cards, merchant services, Business Blueprint, Resy, corporate card, business travel, diversity and inclusion, corporate sustainability and Environmental, Social, and Governance reports.

ABOUT RESY

Resy is a digital dining platform that powers restaurants around the world and provides reservation booking for passionate diners. With the powerful backing of American Express, Resy has created best-in-class software that elevates dining experiences and connects restaurants to a vast network of highly engaged diners. Resy is a destination for restaurant discovery, exclusive access, original content, and chef-driven culinary events. The amazing world of restaurants is just a few taps away in the Resy app and at Resy.com.

ABOUT TOCK

Tock offers an all-in-one solution that enables hospitality businesses to adapt and thrive in an ever-changing landscape. With robust reservation, waitlist, and table management capabilities, Tock’s platform offers hospitality businesses everything they need to drive revenue, increase covers, and keep guests coming back. To learn more, visit exploretock.com/join.

ABOUT SQUARESPACE

Squarespace (NYSE: SQSP) is a design-driven platform helping entrepreneurs build brands and businesses online. We empower millions in more than 200 countries and territories with all the tools they need to create an online presence, build an audience, monetize, and scale their business. Our suite of products range from websites, domains, ecommerce, and marketing tools, as well as tools for scheduling with Acuity, creating and managing social media presence with Bio Sites and Unfold, and hospitality business management via Tock. For more information, visit www.squarespace.com.

ABOUT ROOAM

Rooam is a leading contactless payment platform that powers restaurants, bars, music venues, and arenas nationwide. Rooam offers a PCI-compliant solution that easily and securely integrates with every major point-of-sale provider without adding additional hardware. Rooam helps venues improve the speed of service, increase revenue, and deliver an efficient and modern guest experience. Rooam is trusted by the top brands and consumer platforms in hospitality, featuring Resy, Tock, Blackbird, Live Nation, and TAO Group. Learn more at www.rooam.co.

Cautionary Note Regarding Forward-Looking Statements

This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which include current expectations regarding the transactions and future operations, among other matters, contain words such as “believe,” “expect,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “continue” and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements, include, but are not limited to: the parties’ ability to satisfy the closing conditions, including receipt of regulatory approvals, and consummate the transactions; the underlying assumptions related to the transactions proving to be inaccurate or unrealized; and American Express’ ability to integrate Tock and Rooam and benefit from and expand the platforms, tools and capabilities, which will depend in part on management’s decisions regarding future operations, strategies and business initiatives. A further description of these and other risks and uncertainties can be found in American Express’ Annual Report on Form 10-K for the year ended December 31, 2023 and its other reports filed with the SEC.

Source: American Express Company
Location: Global

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¹Engaged Diner means a registered user who books a reservation or sets a notify through a digital channel within the past 6 months from July 2019 and December 2023; the number of restaurants reflects the total of all restaurant partners who are either subscribed to ResyOS, part of Resy's Global Restaurant Network, or part of Pocket Concierge (Japan).

View source version on businesswire.com: https://www.businesswire.com/news/home/20240621180849/en/

Lauren Young, Lauren.Young1@resy.com

Aziza Johnson, Aziza.Johnson@aexp.com

Source: American Express

FAQ

What companies is American Express acquiring?

American Express is acquiring Tock from Squarespace and Rooam.

When did American Express announce the acquisitions of Tock and Rooam?

American Express announced the acquisitions on June 21, 2023.

How much is American Express paying for Tock?

American Express will acquire Tock for $400 million in cash.

What does Tock provide?

Tock provides reservation, table, and event management technology for 7,000 restaurants, wineries, and other venues.

What benefits will Rooam bring to American Express?

Rooam will enhance Amex's mobile ordering and payment capabilities and integrate with Resy to improve marketing, loyalty, and payment systems.

What are the conditions for the Tock acquisition?

The Tock acquisition is subject to customary closing conditions, including regulatory approval.

What is the stock symbol for American Express?

The stock symbol for American Express is AXP.

How will Tock and Rooam acquisitions affect Amex's dining platform?

The acquisitions will enhance Amex's dining platform, offering more personalized hospitality and pre-paid experiences, and providing more convenient payment methods.