Jan 21, 2020, 07:30 EST
Elkland, United States, Jan 21, 2020, 07:30 /Comserve / -- Lightspeed POS, Inc. (TSX: LSPD) has announced its acquisition of Gastrofix, one of the market players that offers cloud-based hospitality POS solutions
A recent announcement had just been made by the Canadian based point-of-sale and e-commerce software provider Lightspeed POS, Inc. (TSX: LSPD) that it has entered into an agreement to acquire a cloud-based POS platform provider, Gastrofix. Both the high-performing teams are expected to complement each other to help assist European merchants run their businesses smoothly in their efforts to move to the cloud.
Germany, Norway and other nations are set to get a boost with access to an array of cloud-based services that is designed to drive businesses ahead. The merchants and restauranteurs belonging to almost all the prime regions in Europe would be able to avail the solutions offered by Lightspeed.
With a fresh set of fiscal laws introduced by the German government this year, merchants are expected to shift towards cloud-based POS systems that could help them to operate their businesses to meet the fresh set of regulatory requirements. Lightspeed, Inc. is anticipated to benefit from such acquisition that could help its business to operate effectively by meeting the fresh set of regulatory requirements.
Lightspeed had already completed the acquisition of enterprises such as Chronogolf, a cloud-based software offering that helps in the management for golf course operators, iKentoo, a point of sale and business management solutions provider for hotels, restaurants, franchises etc. and Kounta, an Australian software company that is operating using its cloud-based Point of Sale system in the hospitality industry.
Dax Dasilva, Lightspeed’s Founder and CEO mentioned that the inclusion of Gastrofix as part of its team further reinforces the position of Lightspeed as the leading player in cloud-based POS technology in addition to establishing Lightspeed’s footprint powering SMBs all over the world. He also added that the company is proud to welcome the employees of Gastrofix to Lightspeed, as both the companies joining together would help to generate fresh opportunities for growing to their highest potential in the hospitality businesses.
Gastrofix’s Founder and CEO Reinhard Martens had shared his views by stating that Gastrofix and Lightspeed shared the common goal of digitization of the hospitality industry with versatile and efficient cloud-based solutions, which has made their pairing a perfect match. He also added that the company is thrilled, because they have obtained an opportunity to combine their resources to reach new customers throughout Europe.
Lightspeed has currently added nine offices in Europe, with the recent opening up of offices in Berlin and Hamburg.
The transaction entered into between Lightspeed and Gastrofix was complete with a base purchase price set at USD 61 million in cash on closing and the issuance of 1,437,930 subordinate voting shares at a price of USD 28.16 per share, that is subject to post-closing working capital adjustment. Further, few of the employees of Gastrofix would be able to earn an additional amount of USD 4.0 million in deferred cash consideration that is accompanied by the issuance of 95,464 subordinate voting shares of Lightspeed at a price of USD 28.16 per share, all through January 2022 considering that several performance objectives would be met.
An additional USD 10.6 million in deferred cash consideration is payable to the selling shareholders of the company, that includes issuance of 250,598 subordinate voting shares at a value of USD 28.16 per share, in case the performance of revenues exceed the revenues that are planned to be obtained every year from the German market in the next couple of years.
Gastrofix is expected to have brought in revenues of close to USD 12.5 million for the financial year ended December 31, 2019, which would be based on calculations arrived at according to German GAAP and HGB. There is a conversion undertaken to IFRS by the company and the company is predicting some accounting adjustments that could lower its revenue by close to USD 1.7 million for this period, so that it can account for some reseller revenue on a net basis.
Independent Tech & news media Writer
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