Source: Lighstspeed POS
Lightspeed POS Inc. (TSX: LSPD), a leading omnichannel point of sale platform for over 51,000 customer locations1 worldwide, today announced that it has entered into an agreement to acquire Australia-based Kounta Holdings Pty Ltd, a rapidly growing, cloud-based POS solutions provider to small and medium-sized businesses operating within the hospitality industry.
Combining with Kounta will strengthen Lightspeed's resources to provide even greater customer experiences as it expands into the Asia-Pacific region, while tapping the talent and expertise needed to accelerate Lightspeed's mission of becoming the leading global POS platform for small and medium-sized businesses, the backbone of vibrant cities and communities throughout the world.
The purchase bolsters Lightspeed's footprint across Australia and New Zealand by more than 7,000 customer locations1, including leading small and medium-sized brands across cafes, bars, full service restaurants, high-end boutique hotels, and more.
"Kounta's impressive track record is thanks to its team, and we are excited to welcome them into the Lightspeed family," said Dax Dasilva, Founder and CEO of Lightspeed. "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."
"Joining Lightspeed, a recognized global leader, is a testament to our hard work and also a shared passion for empowering independent businesses," said Nick Cloete, Founder and CEO of
Kounta. "We are immensely proud to partner with a company so well aligned on purpose, culture and technology."
DETAILS OF TRANSACTION
Founded in 2012, Kounta generated revenue of approximately USD $6.4 million2 in their fiscal year ended June 30, 2019. Lightspeed will acquire all of the outstanding shares of Kounta for approximately US$35.3 million3 in cash on closing and the issuance of 306,290 subordinate voting shares in the capital of Lightspeed, at a value of US$25.054 per share, subject to post-closing working capital adjustment. An additional US$7.5 million3 in deferred cash consideration along with the issuance of 299,692 subordinate voting shares in the capital of Lightspeed, at a value of US$25.054 per share, is payable to certain Kounta employees through October 2021, in each case if certain milestones, including the continued employment of those employees, are achieved by June 2020 and October 2021. An additional amount of US$3.4 million3 tied to a marketing alliance agreement is payable to one selling shareholder in three annual installments beginning on closing. The deal is expected to close before the end of the current month, subject to customary closing conditions.
Additional details regarding this transaction will be communicated during Lightspeed's conference call to discuss second quarter 2020 results, scheduled for November 7th, 2019.