PAR Tech Beefs up Its Stake in Hospitality With a Deal for Bridg

Hospitality-payments specialist PAR Technology Corp. announced it will acquire Bridg Inc., a provider of identity technology and shopper data, from Cardlytics Inc. for $27.5 million, payable in shares of PAR common stock. Cardlytics agreed to pay $350 million in cash to acquire Bridg in 2021.

The deal, which the parties say is set to close by the end of March, represents a significant upgrade in marketing potential for PAR, observers say. Based in New Hartford, N.Y., PAR is a player in the highly competitive market for restaurant payments technology. Founded in 2012, Los Angeles-based Bridg specializes in processing transaction data to help companies identify customers and improve their engagement with sellers.

But the dramatic downdraft in valuation for Bridg could indicate hard sailing at Cardlytics, observers say. The company recorded $52.3 miliion in revenue for the third quarter, a 22% drop year-over-year.  Its net loss came to $72.7 million, an improvement from a $145-million loss a year earlier. Atlanta-based Cardlytics did not immediately respond to requests for comment on the deal.

PAR’s rationale for the deal hinges on the marketing technology it expects Bridg will bring. This capability can then be extended to restaurant and retail clients. “Bridg allows PAR to marry the most robust loyalty, offer and segmentation engines in the market with all consumer profiles (including non-loyalty customers) for purposes of marketing and attribution,’ a PAR spokesman tells Digital Transactions News by email.

“This will make PAR very sticky with customers and provide an important piece of our platform to multi-product PAR customers.  We see a large opportunity within our existing customer base and a new market opportunity in hospitality and retail verticals,” adds the spokesman.

PAR also hopes to extend the technology beyond hospitality. “It allows us to enhance our multi-product base with existing customers and grow our engagement products into other retail markets outside of restaurants,” says the spokesman.

Observers say the deal for Bridg should bring significant returns to PAR. ”The Bridg asset gives them identity [technology],” says Eric Grover, principal at the payments consultancy Intrepid Ventures. “It’s an opportunistic and strategic acquisition from PAR’s standpoint.” The company, he adds, is already “thought of as a growth story.”