Inside Cantaloupe’s acquisition of CHEQ
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What
Cantaloupe is a PA-based all-in-one platform helping businesses accept digital payments. Focusing on “micro markets” such as vending machines, as well as retail, entertainment, restaurants, and other industries, Cantaloupe positions itself as a modern payments solution offering hardware as well as software that enables real-time deployment of inventory and staff to meet acute and dynamic operational needs. Founded in 1992, Cantaloupe is publicly traded (NSDQ:CTLP).
On February 1, Cantaloupe announced that it had acquired CHEQ, a Seattle-based payments solution for major sports teams such as the Washington Commanders, Florida Panthers, and Miami Marlins. (Cheq Lifestyle Technology, Inc., or “CHEQ,” is not to be confused with CHEQ AI Technologies Ltd., or “CHEQ,” the cybersecurity solution.)
Why
According to Ravi Venkatesan, CEO of Cantaloupe, the CHEQ acquisition aligns squarely with Cantaloupe’s mission. “We want to move as much commerce as possible to self-service commerce, and we want to be the technology that powers that self-service commerce,” he said. “It's really that simple.”
With, Venkatesan says, the world’s largest footprint of self-service storefronts, Cantaloupe had been looking for a way to deploy its technology along with a partner or acquired company to move into stadiums and other larger venues. It initiated conversations with CHEQ with the goal of a partnership, rather than an acquisition, but CHEQ’s tech stack—including integration with major sports teams’ apps, rewards platforms, and stadium infrastructure through solutions like QR codes—made especial sense as an acquisition to then be integrated into Cantaloupe’s ERP software.
Through such an integration, stadiums and other operational fora can distribute inventory and people efficiently during the rush of events, offering a leg up over other POS solutions. “In plain English, that reduces spoilage… there are all kinds of operational efficiencies,” Venkatesan said.
How
Cantaloupe will operate CHEQ as a standalone business unit, at least for the next two quarters, Venkatesan said, while ensuring that team members from different parts of the company can exchange ideas and familiarize themselves with each other. The company also hopes to leverage “revenue synergies,” rather than more cost-saving opportunities, for instance by selling Cantaloupe’s ERP solution and other hardware to current CHEQ customers. CHEQ and Cantaloupe’s existing go-to-market teams will work adjacent to each other as a result.
Attempting to accelerate its business growth, Cantaloupe will also double down on CHEQ’s existing market, trying to lock down other major league sports teams as well as minor league and college venues. “The addressable market is massive,” Venkatesan concluded.
