Lightspeed today announced the acquisition of iKentoo, a Switzerland-based POS solutions provider for small and medium-sized businesses. Terms of the deal were not disclosed.
The purchase marks Lightspeed’s second acquisition since it went public on the TSX in March. The Montreal company announced the acquisition of its strategic software partner Chronogolf in May, at the same time that it revealed its fourth quarter and full fiscal year results.
“The addition of iKentoo aligns with our strategy to rapidly increase our global footprint, providing us with meaningful scale.”
Lightspeed noted that “combining” with iKentoo will “significantly bolster” the company’s growing presence in Europe. The company stated that nearly a third of its total revenue is made up of European customers since it launched on the continent in 2014. Dax Dasilva, founder and CEO of Lightspeed, stated that iKentoo’s entire team will be joining Lightspeed and that its domain expertise in the markets it serves will allow Lightspeed to accelerate its ability to move its own product into “new international arenas.”
“iKentoo and Lightspeed have in common a core strategic objective to provide cutting-edge solutions and a robust product offering to complex small businesses across several continents,” David Clerc and Serge Sozonoff, co-founders of iKentoo said in a joint statement. “We’re excited about the opportunity to combine forces to bring even more innovative products to a broader customer base.”
Founded in 2011, iKentoo touts itself as the most advanced iPad-based POS and business management system on the market for the hospitality industry. The Switzerland company operates in over 14 countries, though primarily in Switzerland, South Africa, and France. It boasts more than 3,800 customers spanning chains, food trucks, hotels, coffee shops, festivals, and more.
“The addition of iKentoo aligns with our strategy to rapidly increase our global footprint, providing us with meaningful scale in new markets in which Lightspeed previously had a limited presence,” said Dasilva. “We believe their leading POS solution, respected brand name and large customer base of complex SMBs operating in many of our strongest verticals will perfectly complement our product offering and further enhance our growth trajectory.”
Lightspeed has made a number of acquisitions in its past, including Amsterdam-based ecommerce company SEOshop in 2015, which helped the Montreal company launch its ecommerce platform. In 2014 Lightspeed acquired Belgium-based mobile hospitality POS company POSIOS, launching Lightspeed Restaurant. In late 2018 it also acquired Toronto-based ReUp, and launching a customer loyalty and engagement platform, Lightspeed Loyalty, which launched globally in April.
Following its IPO, Lightspeed announced in April that it had received credit facilities, including a new $30 million stand-by acquisition term loan, from CIBC. Dasilva told BetaKit at the time that Lightspeed is always looking out for opportunities of mergers and acquisitions and reiterated the statement while speaking with BetaKit at Montreal’s Startupfest last week.
“Acquisitions have always been part of our growth strategy and we don’t see that changing in the future, we are always evaluating our options, and so that credit facility is there to enable those conversations should they reach the appropriate stage,” Dasilva stated, in April.
Further information regarding the iKentoo transaction details are set to be discussed during Lightspeed’s first quarter 2020 conference call, which is scheduled for August 8.
Feature image courtesy Lightspeed