Cantaloupe Expects Its $41-Million Deal for 32M To Net More Locations And Improve Margins

Vending and unattended payments specialist Cantaloupe Inc. has closed on its $41 million acquisition of Three Square Market, known as 32M, and intends to use it as a springboard for expansion and improved profit margins.

Three Square Market, with headquarters in River Falls, Wis., will generate an estimated $19 million in revenue with a margin of more than 20% in 2022 from its micro merchant and vending operations. Three Square Market, which embarked on a European expansion a few years ago, also has nearly 3,000 locations in North America, the United Kingdom, Sweden, and Romania. The two companies also expect the combined U.S. and U.K. sales and support staff to yield improved results.

“The acquisition of 32M, with its expansive portfolio of micro-market technology and broad geographic footprint, immediately accelerates two of our most important strategic growth priorities,” Ravi Venkatesan, Cantaloupe chief executive, said in a statement. “32M is already an integrated partner of our Seed Markets software platform, which will enable Cantaloupe to capture additional revenue synergies through cross-sell and upsell opportunities throughout our combined customer base.” Seed Market helps vending operators with route scheduling, merchandising, and inventory, among other aspects.

Malvern, Pa.-based Cantaloupe says 32M has been an integration partner in its Seed Market platform since 2019. 32M will bring a line of self-service kiosks, smart coolers, and its cloud-based software to the deal. Smart coolers are refrigerated units with displays facing customers that can digitally show product availability.

The deal could be a capstone for Cantaloupe in a year in which it had a CEO transition and  launched the ePort Engage Combo, an all-in-one card reader and telemeter, touchscreen, and payment platform.

Cantaloupe started the year with an eye to improvement. In February, then chief executive Sean Feeney credited improved demand for technology as unattended retail sites became more common for its stronger 2021 performance.