Two weeks after SpotOn acquired Appetize , Doron Friedman had a bold idea. The co-founder and chief product officer at SpotOn was tasked with forming an itinerary for the growing product team — which included new Appetize employees —  that had ventured to Chicago to meet for the first time. Friedman could sense the tension and uncertainty, especially from the Appetize folks. How would this acquisition affect their jobs? Their future? What would their new bosses be like? Dinner and drinks to break the ice was mandatory, but where? Friedman knew the perfect spot. His home. At first, some people thought this idea was odd, including Jason Pratts, co-founder of Appetize and now the SVP of product at SpotOn. “When the Appetize folks asked me what the plan was, I told them we were going to Doron’s house. And they looked at me like, ‘What? We’re going to our new boss’s house? That’s weird,’” Pratts said. But it made perfect sense to Friedman. He’d grown up in a large Jewish family where people constantly came over to his home, many times unannounced, to eat the food his mother prepared. They would break bread, learn about one another, and treat each other like family. “So I thought to myself,” Friedman said, “‘I’m about to meet a bunch of people I don’t know, but I want them to feel like SpotOn family. The best way to do that? Opening my home, doing what my mother did, and treating them like family.’”
That’s what Friedman’s toast sounded like at the catered event, which featured Israeli food, an open bar and numerous opportunities to get to know one another. “After that night, people came up to me and they were so relaxed,” Friedman said. “It was a beautiful experience.”
SpotOn’s acquisition of the roughly 250-person Appetize team, an enterprise cloud point of sale (POS), digital ordering, and menu management platform focused on enterprise businesses, is the biggest investment to date. The exciting part is that the purchase will allow SpotOn to power businesses of every size, but acquisitions come with challenges, too. What happens behind the scenes? How do you ensure a smooth transition? How do you keep people happy? Built In sat down with three people deeply involved in the deal to find out. WHAT THEY DID, WHAT THEY’LL DO
SpotOn was founded to help small businesses compete and win by bringing together payment processing and software solutions, which give its clients richer data and tools that empower them to market and sell more effectively to their customers. Tools for small and mid-sized retailers and restaurants (SMBs) include payments, marketing, reviews, e-commerce, analytics and loyalty. Prior to the acquisition, Appetize was built as an enterprise cloud point of sale (POS), digital ordering, and menu management platform for food services and retail businesses. Over its nearly 10-year history, it built trust with big-name, high-volume businesses, including sports and entertainment venues, theme parks and attractions, restaurants, retailers, education campuses and business cafeterias. Post-acquisition, SpotOn is one of the fastest-growing software and payments companies making it easy for small, mid-size and enterprise business owners to create exceptional experiences for their customers across the restaurant, retail, sports, education and entertainment industries. Leading With Empathy
When Michelle Zmugg, general counsel at SpotOn, learned of the Appetize acquisition, she tried a little exercise with the HR team. She told them that SpotOn had been acquired. After letting those feelings of excitement, confusion, and the swirl of questions sink in for a few minutes, she told them it was the other way around. SpotOn had acquired another business. The point of this exercise? “Now you know how they feel,” Zmugg said. Leading with empathy has been the focus for her team as they work to ensure the smoothest transition possible. “We didn’t buy a company of widgets,” Zmugg said. “We bought a company of people that have values, goals and are hungry for what's next. They’re all wondering, ‘How is this going to affect me, and how is this going to support me?’”
For Zmugg and her cohorts, answering those questions has meant setting up a merger hotline email where people can ask questions 24/7 about everything from, “How do I sign up for 401(K)?” to “Can I get another SpotOn t-shirt?” It has meant changing some of SpotOn’s benefits to coincide with the ones that Appetize employees are familiar with, like switching SpotOn’s basic vacation policy to flexible PTO, and adding the additional paid holidays that Appetize offered. We didn’t buy a company of widgets. We bought a company of people that have values, goals and are hungry for what’s next.”
 
It has meant small gestures, like merging Appetize’s popular Slack channels with SpotOn’s, and including a little pet bandana in everyone’s welcome kit. “We knew they were a pet-obsessed company, so that was a small way of showing them that we see and appreciate that part of their culture,” Zmugg said. “It was a hit.”
Like most acquisitions, there were challenges. As Zmugg explained, the HR team was at a disadvantage when SpotOn acquired Appetize for the sole reason that SpotOn obviously didn’t have a chance to interview every single person before signing the dotted line. Now, Zmugg and the HR team are playing catch up, getting to know each person and address their questions and concerns, while also assessing how their new role fits into SpotOn. “I think the biggest challenge for me is that I want everyone to be happy. I want everyone to feel valued,” Zmugg said. “But you have to realize that not everyone is going to feel good right away. You need to give people space to process.”
It’s all about finding the right moments, Zmugg added. For example, an employee from Appetize recently reached out via email with a question. Zmugg could’ve easily typed a response, but instead, she asked if they could set up a video chat to talk it through. During the chat, she learned that this employee was on parental leave when the acquisition took place, and after answering his question in detail, he was about to hop off the call when Zmugg stopped him. “‘Hey, wait! I want to talk to you,’” Zmugg recalled saying. “‘How’s it going? How’s your new baby? What has it been like since you’ve returned, now that you’re at a different company?”
They ended up having a great conversation, which thrilled Zmugg, because it was a chance to get to know someone instead of just answering an email. “Later on that day, he sent me an email with a picture of his daughter,” Zmugg said. “And he thanked me for reaching out professionally and personally.”
 
Better Together
There’s a reason why the theme for this acquisition is “Better Together,” and it has nothing to do with Jack Johnson. Simply put, Appetize and SpotOn complement each other’s strengths. “SpotOn, especially in the restaurant and retail space, has one of the best online ordering solutions in the marketplace. We have a cloud-based system. We have scheduling and appointment software. We have invoicing technology,” Friedman said. “On the flip side, Appetize has these great kiosks and kitchen display systems (KDS). They have offline mode, and they’re also cloud-based.”
What this marriage of strengths creates, Pratts explained, is a company that can now support a business of any size through every step of their journey — from a small mom-and-pop shop, to a business with 1,000 locations and kiosks at Yankee Stadium. “When you look at the industry and at every piece of technology that a restaurant, retail or enterprise business needs, we have a solution in house that can meet that need,” Pratts said. As an added bonus, both Appetize’s and SpotOn’s tech stack is almost identical, which will make integrations a breeze. We have to stress to them that we’re growing. Everybody loves to be a part of a growing company. And we’re investing — investing in them.’’
 
On the product and tech side, what’s the next step in an acquisition like this? For Friedman, it starts with listening. That’s what leaders should be doing in the first 60 days, he said. After that, you build a plan, and you do it together. “The key is getting everybody involved and making sure everybody’s committed,” Friedman said. “We have to stress to them that we're growing. Everybody loves to be a part of a growing company. And we’re investing — investing in them. We’re gonna make mistakes, and we’ve made mistakes. But as long as you correct them early and you’re sincere, that’s half the battle.”
Pratts shared something else he’s learned during this process: Communicate often. Over-communicating and connecting with people as their feelings, emotions and questions change by the day or hour is critical, Pratts explained. And one other thing. “If I ever acquire a company, I’m inviting my new co-workers over to my house,” Pratts said. “That was special.”

What Happens Behind the Scenes After a Big Acquisition?

SpotOn, one of the fastest-growing software and payments companies with comprehensive solutions for restaurants and retail businesses, today announced $300 million in Series E funding, raising its valuation to $3.15 billion. The funding will be used to acquire Appetize, a leading digital and mobile commerce platform for enterprise businesses, such as sports and entertainment venues, theme parks, zoos, college campuses, and more. The round was led by Andreessen Horowitz (a16z), one of the world’s leading technology and software investors, with continued participation from current investors, including DST Global, 01 Advisors, Dragoneer Investment Group, Franklin Templeton, and Mubadala Investment Company, as well as new investors Wellington Management and Coatue Management. Advisors Douglas Merritt, CEO of Splunk, and Mike Scarpelli, CFO of Snowflake, also made individual investments. The funding comes four months after SpotOn's Series D and increases its valuation from $1.875 to $3.15 billion, further reinforcing the company's momentum and market potential. "This investment enables SpotOn to significantly increase its total addressable market, with an end-to-end platform for restaurants and retail business of all types and sizes,” says David George, general partner at Andreessen Horowitz. "The acquisition is a natural fit given the companies’ complementary technology and shared focus on market-leading customer support.”
Following the acquisition, SpotOn is positioned to rapidly expand its reach to serve the middle market. SpotOn has hundreds of account executives embedded in communities across the country who will bring Appetize’s world-class technology to thousands of regional entertainment centers, stadiums, colleges, and universities in these communities. “From our first meetings with Appetize, we knew they had great people and a great product, and the more we worked together it became clear that our two companies were stronger together,” says Matt Hyman, Co-CEO of SpotOn. “We are combining our complementary technologies, extending our market coverage and retaining our shared passion for great service and support for our clients. SpotOn is quickly becoming a part of everyday life for consumers across the country whenever they shop, dine, or visit a stadium or a college campus.”
“Appetize has built a truly special team and product that is trusted by some of the most iconic brands in hospitality, from Yankee Stadium to LSU to the San Diego Zoo. Likewise, SpotOn has earned the trust of tens of thousands of small businesses and independent restaurants with their technology and team,” says Max Roper, CEO at Appetize, who will continue running the business as part of SpotOn. “This acquisition enables our combined team to accelerate investments into our core product and client base, while expanding to fill a void in the mid-market space. By bringing the two companies together, businesses from a major league ballpark to a local clothing boutique will have access to modern, intuitive, cloud-based technology that delivers exceptional customer experiences from one trusted provider.” 
The acquisition leverages SpotOn’s SMB expertise and Appetize’s enterprise acumen to focus on a broader market that is beneficial for all clients. SMBs will benefit from robust, scalable technology that can grow with them, and enterprise clients can leverage complementary products, such as sophisticated loyalty programs and expanded marketing capabilities, to increase engagement with their most valuable customers. Through these combined, complementary technologies, SpotOn is positioned to support clients of all types and sizes to manage their business now and well into the future. The transaction is expected to close by mid-September. News and information presented in this release has not been corroborated by QSR, Food News Media, or Journalistic, Inc.
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SpotOn Raises $300 Million, Plans to Acquire Digital Platform Appetize

Appetize’s products include touchless payment and mobile ordering systems, self-service kiosks and handheld devices. Playa Vista-based point-of-sale software developer Appetize Technologies Inc. has been acquired by SpotOn Transact Inc. for $415 million. The deal with SpotOn, a San Francisco-based payment software company, is expected to close this month. ... Subscribe to get the full story. Are you a subscriber? Sign In

Appetize Acquired by SpotOn for $415 Million

SpotOn, provider of mobile payment technology and management system for restaurants and small businesses, announced US$300 million in Series E funding, raising its valuation to US$3.15 billion. The funding, which
The post SpotOn Raises US$300 Million in Series E Funding to Acquire Appetize appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

SpotOn Raises US$300 Million in Series E Funding to Acquire Appetize

September 20, 2021 | Fintech Switzerland | Shares: 0
SpotOn, provider of mobile payment technology and management system for restaurants and small businesses, announced US$300 million in Series E funding, raising its valuation to US$3.15 billion. The funding, which
The post SpotOn Raises US$300 Million in Series E Funding to Acquire Appetize appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

Live Nation Entertainment (NYSE: LYV) is an entertainment company that consists of five businesses: concert promotion and venue operations, sponsorship, ticketing solutions, eCommerce, and artist management. Its subsidiaries include Ticketmaster, Live Nation Concerts, Live Nation Media & Sponsorship, and Artist Nation Management.

Live Nation Entertainment

`` Our ultimate goal is helping artists and fans connect and enjoy live music together , and our partnership with Appetize has helped us adapt and find an innovative solution to make that happen for these unique shows , '' said Tom See , Live Nation Entertainment COO , U.S. Venues .

Appetize Provides Touch-Free Solutions for Live Nation’s Socially Distanced Drive-In Concert Series and Outdoor Amphitheaters

Fans At Live From The Drive-In Can Order Through Appetize Using Their Phones From Their Space. (Graphic: Business Wire)

Urban Air Adventure Park is an operator and franchisor of indoor adventure parks offering active entertainment for families and organizations.

Urban Air Adventure Park

Urban Air picks Appetize for ordering and payment in North America

Restaurant365 provides a restaurant-specific accounting and back-office software platform that alleviates the significant burdens placed on restaurant operators – allowing concepts to operate more efficiently and profitably in a digital world.

Restaurant365

Tropical Smoothie Cafe is franchised a chain of more than 270 quick casual restaurants across the United States.

Tropical Smoothie Cafe

Spinlister

Red Bull

Blackline

Rent.com

eBay

Stamps.com

Citysearch

Rubicon Project

Business.com

Convertro

AvePoint

Verizon

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Post-Money Valuation

Amount Raised

Shares Authorized

Issuance Price

Dividend Rate

Liquidation Preferences

Liquidation Price

Participation

Conversion Price

Anti Dilution

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Restaurant Tech Market Map: 40+ Companies Reinventing Eat-Out Convenience

Hardware and software for restaurant management, bookings, staffing, mobile restaurant payments, inventory management, cloud kitchens, and more. On-demand food delivery services are excluded from this collection.

Restaurant Tech

Startups aiming to work with retailers to improve brick-and-mortar retail store operations.

Store management tech (In-store retail tech)

Companies offering technology-driven solutions that serve the supply chain & logistics space (e.g. shipping, inventory mgmt, last mile, trucking). 

Supply Chain & Logistics Tech

Companies and startups in this collection enable consumers, businesses, and governments to pay each other - online and at the physical point-of-sale.

Payments

Tech-enabled, physical retail selling formats that reach beyond the walls of a traditional store.

New Retail Formats

Fintech

Appetize provides point-of-sale, handheld, kiosk, and inventory products for operators, as well as a mobile ordering platform for fans to multi-site enterprise clients including entertainment venues, convention centers, business dining and university campuses, theme parks, travel, and leisure, among others.On September 13th, 2021, Appetize was acquired by SpotOn at a valuation of $415M.

Name	Work History	Title	Status
Max Roper	Spinlister, and Red Bull	Chief Executive Officer	Current
Jason Pratts		Chief Operating Officer, Chief Information Officer	Current
Alain Avakian	Blackline, Rent.com, eBay, Stamps.com, and Citysearch	Chief Technology Officer	Current
Brad Holcenberg	Rubicon Project, Business.com, and Rent.com	Senior Vice President	Current
Tony Lanni	Blackline, Convertro, AvePoint, and Verizon	Senior Vice President	Current

Name	Max Roper	Jason Pratts	Alain Avakian	Brad Holcenberg	Tony Lanni
Work History	Spinlister, and Red Bull		Blackline, Rent.com, eBay, Stamps.com, and Citysearch	Rubicon Project, Business.com, and Rent.com	Blackline, Convertro, AvePoint, and Verizon
Title	Chief Executive Officer	Chief Operating Officer, Chief Information Officer	Chief Technology Officer	Senior Vice President	Senior Vice President
Status	Current	Current	Current	Current	Current

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Appetize

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Appetize Management Team

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