PAR Technology Stock Is Trading Higher On Acquiring Punchh For $500M

PAR Technology Corp PAR has acquired loyalty and guest engagement solutions provider Punchh Inc for $500 million in cash and PAR stock.
This arrangement will catapult PAR into a unified commerce cloud platform for enterprise restaurants and position it to lead the industry with integrated point-of-sale, back office, payment, and guest engagement solutions.
PAR financed the cash component through a combination of equity and debt, including sale proceeds from $160 million of PAR shares to T. Rowe Price Associates affiliate PAR Act III and a $180 million senior secured term loan from Owl Rock First Lien Master Fund as administrative and collateral agent.
Act III Partner Keith Pascal joined the PAR board. Act III Managing Partner and founder of Panera Bread Ron Shaich assumed a Board Observer seat.
"This eliminates the need for juggling disjointed vendors, developing cumbersome point-to-point integrations, and relying on 3^rd party dependencies. At the same time, Punchh advances our ability to provide customers with an end-to-end solution, from guest-to-kitchen, through one unified data source," CEO Savneet Singh said.
PAR held $180.7 million in cash and equivalents as of Dec. 31, 2020.
Price action: PAR shares traded higher by 21.3% at $75.60 on the last check Thursday.