Canadian omnichannel point-of-sale (POS) platform Lightspeed POS has signed an agreement to acquire Kounta.
Headquartered in Australia, Kounta offers cloud-based POS solutions to SMEs associated with the hospitality sector.
Under the agreed terms, Lightspeed will purchase all outstanding Kounta shares for nearly $35.3m in cash at closing. It will also issue 306,290 subordinate voting shares at $25.054 per share in the capital of Lightspeed.
The agreement also requires the Canadian firm to pay a deferred consideration of $7.5m in cash and issue 299,692 subordinate voting shares to certain Kounta employees, subject to completion of certain milestones.
Lightspeed will also pay an additional $3.4m to a Kounta shareholder in three annual tranches after closing, under a marketing alliance agreement.
In the fiscal year that ended on 30 June 2019, Kounta reported revenue of nearly $6.4m.
The latest acquisition marks Lightspeed’s expansion into the Asia-Pacific region.
It adds over 7,000 customer locations across Australia and New Zealand to Lightspeed’s portfolio.
Lightspeed founder and CEO Dax Dasilva said: “Kounta’s impressive track record is thanks to its team, and we are excited to welcome them into the Lightspeed family.
“When smart minds collaborate, our merchants are the main beneficiaries of the resulting innovation, ultimately enabling SMBs around the world to reach their full potential through our technology.”
Kounta founder and CEO Nick Cloete added: “Joining Lightspeed, a recognised global leader, is a testament to our hard work and also a shared passion for empowering independent businesses.”
The Kounta acquisition is anticipated to complete before the end of this month.