Lightspeed consolidates leadership position in
Europe with acquisition of
Germany's premier cloud
provider
MONTREAL, Jan. 7, 2020
/CNW Telbec/ - Lightspeed POS Inc. (TSX: LSPD), a leading
omnichannel point of sale platform to nearly 57,000 small and
medium-sized retail and restaurant locations worldwide, today
announced that it has entered into an agreement to acquire
Gastrofix, a quickly-growing market leader for cloud-based
POS hospitality software in Germany.
Lightspeed's acquisition of Germany's premier cloud-based hospitality POS
solutions provider brings two high-performing, complimentary teams
together to better assist European merchants as they transition to
the cloud.
With the addition of Gastrofix's over 8,000 customer locations,
including the Michelin-starred Seven Seas (Hamburg), Leaders Club winner Bar Shuka
(Frankfurt) and the luxury
Steigenberger Hotels and Resorts, Lightspeed solidifies its
presence in Europe, namely in
countries such as Germany,
Austria and Norway, opening up access to an array of
cloud-based services designed to propel European businesses
forward. With this most recent acquisition, Lightspeed now has the
capacity to offer solutions for merchants and restauranteurs in all
key regions across Europe.
This acquisition is timely as German fiscal laws being
introduced in 2020 could push merchants and restauranteurs to
upgrade to cloud-based POS systems to help them run their
businesses and meet new regulatory requirements.
This acquisition builds on Lightspeed's growth momentum, having
completed a series of acquisitions in 2019, including:
Chronogolf, a solution for golf course operators,
iKentoo, a Switzerland-based POS solutions provider which
serves merchants in over 14 countries across Europe and Africa, and Kounta, a leading
Australia-based provider in the
hospitality industry.
"The addition of Gastrofix to our team further solidifies
Lightspeed as a leader in cloud-based POS technology and
establishes our immense footprint powering SMBs across the globe,"
said Dax Dasilva, Founder and CEO
of Lightspeed. "We are proud to welcome Gastrofix's
passionate employees to Lightspeed. Together, we will create new
opportunities for hospitality businesses to reach their highest
growth potential amidst shifts in the industry. Lightspeed will
continue to execute on further investments to drive complex SMBs
forward through the support of top technology in the market."
"Gastrofix and Lightspeed's common goal of digitizing the
hospitality industry with versatile, efficient cloud-based
solutions made the pairing a perfect match," said Reinhard Martens, Founder and CEO of
Gastrofix. "We're thrilled by the opportunity to combine our
resources to reach new customers across Europe."
With the addition of offices in Berlin and Hamburg, Lightspeed's footprint now comprises
nine European offices including a presence in Amsterdam, Ghent, London, Geneva, Lausanne, Zurich, and Paris.
TRANSACTION DETAILS
Lightspeed has entered into an
agreement to acquire all of the outstanding shares of
Gastrofix for a base purchase price of approximately US
$61 million in cash on closing and
the issuance of 1,437,930 subordinate voting shares in the
capital of Lightspeed, at a value of US$28.16 per
share, subject to post-closing working capital
adjustment. In addition, certain Gastrofix employees, directly
or indirectly, can earn an additional US$4.0
million in deferred cash consideration along with the
issuance of 95,464 subordinate voting shares in the
capital of Lightspeed, at a value of US$28.16 per share, through January 2022 if various performance objectives
are met.
An additional amount of up to US$10.6
million in deferred cash consideration along with the
issuance of up to 250,598 subordinate voting shares in the capital
of Lightspeed at a value of US$28.16
per share, are payable or issuable to the selling shareholders of
the company if revenues overperform the planned revenue from the
German market in each of the next 2 years.
For the year ending December 31,
2019, Gastrofix is anticipated to have generated revenue of
approximately USD $12.5 million,
calculated in accordance with German GAAP and HGB. The company is
currently undergoing a conversion to IFRS and anticipates a
potential accounting adjustment to reduce revenue by approximately
$1.7M for this period to account for
certain reseller revenue on a net basis.
Further discussion about this transaction will be held on
Lightspeed's third quarter earnings call.
ABOUT LIGHTSPEED POS INC.
Lightspeed (TSX: LSPD) is a
cloud-based commerce platform powering small and medium-sized
businesses in over 100 countries around the world. With smart,
scalable, and dependable point of sale systems, it's an all-in-one
solution that helps restaurants and retailers sell across channels,
manage operations, engage with consumers, accept payments, and grow
their business.
Headquartered in Montréal, Canada, Lightspeed is trusted by favorite
local businesses, where the community goes to shop and dine.
Lightspeed has grown to over 900 employees, with offices in
Canada, USA, Europe,
and Australia.
FORWARD LOOKING STATEMENTS
This press release
may include forward-looking information and forward-looking
statements within the meaning of applicable securities laws
("forward-looking statements"). Forward-looking statements are
statements that are predictive in nature, depend upon or refer to
future events or conditions and are identified by words such as
"will", "expects", "anticipates", "intends", "plans", "believes",
"estimates" or similar expressions concerning matters that are not
historical facts. Certain statements made in this press release are
forward-looking statements, including, but not limited to,
statements relating to benefits expected to result from the
acquisition of Gastrofix by Lightspeed, including our plans for
expansion in Europe, our business
outlook, objectives, plans and strategic priorities, and other
statements that are not historical facts. Such statements are based
on current expectations of Lightspeed's management and inherently
involve numerous risks and uncertainties, known and unknown,
including economic factors. A number of risks, uncertainties and
other factors may cause actual results to differ materially from
the forward-looking statements contained in this news release. This
news release should be read in conjunction with the risk factors
set out in the most recent Management's Discussion and Analysis of
Financial Condition and Results of Operations and under "Risk
Factors" in our most recent Annual Information Form, both of which
are available under our profile on SEDAR at www.sedar.com. Readers
are cautioned to consider these and other factors carefully when
making decisions with respect to Lightspeed's subordinate voting
shares and not to place undue reliance on forward-looking
statements. Forward- looking statements contained in this press
release are not guarantees of future performance and, while
forward-looking statements are based on certain assumptions that
Lightspeed considers reasonable, actual events and results could
differ materially from those expressed or implied by
forward-looking statements made by the Lightspeed. Except as
may be expressly required by applicable law, Lightspeed does not
undertake any obligation to update publicly or revise any such
forward-looking statements, whether as a result of new information,
future events or otherwise. Forward-looking statements are provided
herein for the purpose of giving information about benefits
expected to result from the acquisition of Gastrofix by Lightspeed,
including our plans for expansion in Europe. Readers are cautioned that such
information may not be appropriate for other purposes.
There can be no assurance that the benefits expected to result
from the acquisition of Gastrofix, including our plans for
expansion in Europe, will be
realized. The market penetration in Europe could materially differ from current
expectations.
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SOURCE Lightspeed POS Inc.