PAR Technology Corporation Acquires Delaget™ Expanding its Restaurant Analytics and Back-Office Capabilities

Rhea-AI Summary

PAR Technology (NYSE: PAR) has acquired Delaget, , a leading provider of restaurant analytics and business intelligence solutions, in a transaction that closed on December 31, 2024. The acquisition, valued at $132.0 million, was primarily paid in PAR common stock.

Delaget serves over 30,000 locations and 125+ brands, including 40 of the top 50 North America-based restaurant concepts. Their platform provides data analytics, loss prevention, and operational insights to help restaurant operators improve profitability.

The acquisition aims to enhance PAR's Operator Cloud solution and accelerate the development of the PAR Data Platform, which unifies data across restaurant tech stacks to provide comprehensive guest and operational insights.

Positive

• Strategic acquisition expanding PAR's analytics and back-office capabilities
• Access to 30,000+ locations and 125+ brand customers
• Immediate value addition through enhanced back-office and delivery operations
• Accelerates development of PAR Data Platform

Negative

• Significant stock-based payment may lead to shareholder dilution
• Integration costs and challenges may impact short-term profitability

Insights

Financial Analyst

This $132 million strategic acquisition significantly strengthens PAR's market position in the restaurant technology sector. The deal structure, primarily using stock-based consideration, preserves cash while leveraging PAR's equity value. With Delaget's 30,000+ location footprint and impressive client roster including 40 of North America's top 50 restaurant concepts, this acquisition immediately expands PAR's recurring revenue base and cross-selling opportunities.

The integration of Delaget's analytics platform with PAR's Operator Cloud creates substantial synergistic value. The combined solution will enhance PAR's data monetization capabilities and accelerate the development of their Data Platform initiative. Based on industry metrics, restaurant analytics platforms typically generate $50-100 in monthly recurring revenue per location, suggesting this acquisition could add $18-36 million in annual recurring revenue.

Tech Industry Analyst

This acquisition represents a pivotal move in consolidating restaurant technology solutions. Delaget's analytics and business intelligence capabilities fill a important gap in PAR's technology stack. The real value lies in the data integration possibilities - by combining PAR's point-of-sale data with Delaget's analytics engine, restaurants gain unprecedented visibility into their operations, from inventory management to labor optimization.

The timing is strategic as restaurants increasingly rely on data-driven decision making to combat rising costs and operational complexities. The integration of real-time analytics with operational systems creates a powerful feedback loop that can significantly impact restaurant profitability. For the average restaurant operator, this translates to faster identification of loss prevention opportunities and more efficient delivery operations - critical factors in today's competitive landscape.

Market Research Analyst

This acquisition positions PAR to capture a larger share of the rapidly growing restaurant management software market, currently valued at $6.5 billion and expanding at a 15% annual rate. Delaget's impressive client base, including 40 of the top 50 North American restaurant concepts, provides PAR with significant upsell opportunities and strengthens its competitive position against players like Toast and Square.

The transaction's structure, primarily using PAR stock, suggests management's confidence in realizing synergies and future value creation. The integration of Delaget's analytics capabilities into PAR's ecosystem creates a more compelling value proposition for large restaurant chains seeking unified technology solutions. This move could accelerate PAR's market share gains in the enterprise restaurant segment.

NEW HARTFORD, N.Y.--(BUSINESS WIRE)-- PAR Technology Corporation (NYSE: PAR) (“PAR Technology” or “PAR”), a global foodservice technology company, today announced its acquisition of Delaget, LLC ("Delaget”), a leading provider of restaurant analytics and business intelligence solutions. The transaction closed on December 31, 2024.

Founded in 2001, Delaget serves over 30,000 locations, with 125+ brands among its customers (including 40 of the top 50 North America-based restaurant concepts). Delaget’s comprehensive platform delivers data analytics, loss prevention, and operational insights that help restaurant operators streamline operations and improve profitability.

Savneet Singh, PAR Technology’s Chief Executive Officer and President commented, “The acquisition of Delaget marks another strategic milestone in PAR’s mission to build the industry’s most comprehensive food service platform. Delaget’s analytics capabilities perfectly complement our Operator Cloud solution, while offering immediate value to our customers through enhanced back-office capabilities, delivery operations, and data-driven insights. Our combination will help restaurant operators make better decisions, reduce costs, and drive operational excellence all in real-time. Access to the Delaget product suite will accelerate development timeframes of the PAR Data Platform, a major initiative that unites data across a restaurant’s tech stack to provide unparalleled guest and operational insights.”

“Joining forces with PAR Technology represents an exciting new chapter for Delaget’s customers and employees,” said Jason Tober, Chief Executive Officer of Delaget. He added. “Our shared vision for transforming restaurant operations through data insights, combined with PAR Technology’s scale and industry leadership, will allow us to deliver even greater outcomes to our customers. As part of PAR Technology, we will bring our platform and solutions to even more businesses across the globe and provide an open integration platform that best serves top restaurant operators and brands.”

Transaction Details
Under the terms of the definitive agreement, PAR acquired 100% of the outstanding equity interests of Delaget in consideration for PAR’s payment of $132.0 million (subject to adjustment for any cash, indebtedness, and net working capital), which was principally paid in shares of PAR common stock. Additional information about the acquisition is available in PAR’s Current Report on Form 8-K filed with the Securities and Exchange Commission today, January 2, 2025.

This press release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, Section 27A of the Securities Act of 1933, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical in nature, but rather are predictive of PAR Technology’s future operations, financial condition, financial results, business strategies and prospects. Forward-looking statements are generally identified by words such as “anticipate”, “believe,” “belief,” “continue,” “could,” “expect,” “estimate,” “intend,” “may,” “opportunity,” “plan,” “should,” “will,” “would,” “will likely result,” and similar expressions. Forward-looking statements are based on management’s current expectations and assumptions that are subject to a variety of risks and uncertainties, many of which are beyond PAR Technology’s control, which could cause PAR Technology’s actual results to differ materially from those expressed in or implied by forward-looking statements, including statements expressing optimism about future business, operational, and growth opportunities and product offerings. Risks and uncertainties that could cause or contribute to such differences include potential business uncertainties relating to PAR Technology’s acquisition of Delaget, including possible disruptions to PAR Technology’s business and operational relationships and its ability to achieve anticipated synergies; risks and uncertainties related to the cost, timing, and complexity of integration; as well as, but not exclusively, the risks and uncertainties discussed in PAR Technology’s Annual Report on Form 10-K for the year ended December 31, 2023 and its other filings with the Securities and Exchange Commission. Forward-looking statements contained in this press release are based solely on the information known to PAR Technology’s management and speak only as of the date of this press release. PAR Technology undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise, except as may be required under applicable securities law.

About Delaget™
Delaget has created a name for itself within the restaurant industry as the top innovator in restaurant data solutions and is recognized for its intuitive solutions, industry knowledge, and customer service and support. Delaget is trusted by 30,000+ restaurants and top brands, including Taco Bell, KFC, Pizza Hut, IHOP, Burger King, and more. For more information about Delaget’s award-winning restaurant reporting and analytics solutions, visit delaget.com or join us on LinkedIn.

About PAR Technology
For over four decades, PAR Technology Corporation (NYSE: PAR) has been at the forefront of technology innovation in foodservice, helping businesses create exceptional guest experiences and connections. Our comprehensive suite of software and hardware solutions, including point-of-sale, digital ordering, loyalty, back-office management, and payments, serves a diverse range of hospitality and retail clients across more than 110 countries. With our "Better Together" ethos, PAR continues to deliver unified solutions that drive customer engagement, efficiency, and growth, all to make it easier for our customers to manage their operations. To learn more, visit partech.com or connect with us on LinkedIn, X (formerly Twitter), Facebook, and Instagram.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250102486056/en/

Christopher R. Byrnes (315) 743-8376

chris_byrnes@partech.com, www.partech.com

Source: PAR Technology Corporation

FAQ

What is the value of PAR Technology's acquisition of Delaget?

PAR Technology acquired Delaget for $132.0 million, primarily paid in PAR common stock.

How many restaurant locations does Delaget serve?

Delaget serves over 30,000 locations and 125+ brands, including 40 of the top 50 North America-based restaurant concepts.

What capabilities will Delaget add to PAR Technology's platform?

Delaget adds data analytics, loss prevention, and operational insights capabilities to PAR's platform, enhancing its back-office capabilities and delivery operations.

When did PAR Technology complete the Delaget acquisition?

The acquisition of Delaget closed on December 31, 2024.

How will the Delaget acquisition impact PAR's Data Platform development?

The acquisition will accelerate the development of PAR's Data Platform by providing enhanced data analytics capabilities and operational insights.