USA Technologies (USAT), a payment technology service provider, has signed a definitive agreement to acquire San Francisco-based Cantaloupe Systems for approximately $85m.
Under the agreement, USAT will pay $65m in cash and issue approximately $20m in stock. It will also accept up to $1.8m of Cantaloupe’s notes payable.
The deal is subject to customary closing conditions and the company expects the transaction to be accretive in fiscal 2018.
The acquisition will combine USAT’s cashless payment technology and Cantaloupe’s logistics and cloud technology to offer a unified platform for the unattended retail market.
The companies expect that the new platform will decrease operational costs, increase sales, and allow the customers to run businesses more efficiently.
Commenting on the move, USA Technologies chairman and CEO Stephen Herbert added: “Cantaloupe Systems is a strategic acquisition for our business as it will expand our product offering as well as our reach. Combining the two best-of-breed companies will provide an exciting opportunity for our customers, shareholders, partners and employees.
“We believe the strength of the teams, as well as the collective product and service portfolio, will provide our customers with a true enterprise software platform that’s unrivaled in the markets we serve.”
Cantaloupe Systems co-founder and CEO Mandeep Arora said: “We anticipate that the combination of Cantaloupe’s award winning, proven Logistics and cloud technology; coupled with USA Technologies’ market-leading, robust and secure payment capabilities will bring a truly distinctive, turn-key enterprise solution to our market.
“Together, we will ensure the industry continues to modernise. In addition, USA Technologies’ financial strength and industry footprint of approximately 13,000 customers will enable us to drive mainstream adoption of our technology and execute on our product vision.”