Cantaloupe Inc., a digital payments and software company, has acquired Three Square Market for $41 million, according to a press release. 32M is a provider of software and self-service kiosk-based point-of-sale and payment solutions that power the micro market industry.

The acquisition delivers full service capabilities to Cantaloupe's presence in the micro market industry while also immediately expanding Cantaloupe's international footprint for its full suite of products.

Cantaloupe plans to continue to support the 32M brand and the company's employees will continue to work out of its facilities in River Falls, Wisconsin and Birmingham, U.K., Ravi Venkatesan, CEO of Cantaloupe Inc., told this website via email.

"32M is already an integrated partner of our Seed Markets software platform, which will enable Cantaloupe to capture additional revenue synergies through cross-sell and upsell opportunities throughout our combined customer base," Venkatesan said in the press release. "We look forward to providing updated guidance, including the impact of our 32M acquisition."

The acquisition provides a line of self-service kiosks, smart coolers and cloud-based software already integrated with Cantaloupe's Seed Markets software platform.

The acquisition also expands Cantaloupe's micro market presence by adding nearly 3,000 locations across North America and international markets including the U.K., Sweden and Romania.

It also increases direct salesforce and customer service teams in both the U.S. and U.K.

The acquisition further generates opportunities for revenue synergies through converting current 32M customers to Seed Markets software platform, as well as cross-selling 32M's micro market technology to Cantaloupe's existing food and beverage customers.

"Bringing 32M into Cantaloupe and gaining access to Cantaloupe's 25,000-plus customer base, from small and medium businesses to large enterprises, is an exciting opportunity for us," said Tony Danna, president of 32M. "We can now better leverage Cantaloupe's Seed platform with our existing customers, both in the U.S. and other geographies, and expect to benefit from a combined salesforce to help our products reach more customers."

The purchase price of $41 million was funded with 90% cash and 10% stock. The stock consideration is subject to a two-year vesting schedule.

Cantaloupe has funded the cash portion with $25 million of debt from its existing credit facility and existing cash on hand.

32M is estimated to produce $19 million of revenue with EBITDA margins of more than 20% for calendar year 2022 on a standalone basis.

Piper Sandler & Co. served as financial advisor and King & Spalding served as legal advisor to Cantaloupe.

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