Buyers Edge Platform, a foodservice procurement service, is acquiring ArrowStream, a provider of supply chain technology for restaurants.
The deal brings together two of the largest digital purchasing and supply chain companies in the U.S. as product shortages, delays and other problems continue to plague restaurant inventories. The companies said combining their data and networks will create a more transparent and efficient buying process for customers.
Terms of the deal were not disclosed. It marks the 11th acquisition for Buyers Edge since 2016. The Waltham, Mass.-based company allows operators to buy goods on a digital marketplace with the help of large amounts of data.
"We are obsessed with bringing data intelligence to foodservice customers and partners to make their jobs easier and more successful,” said John Davie, CEO of Buyers Edge Platform, in a statement. “Adding ArrowStream’s leading [software-as-a-service] solutions expands our end-to-end product offering and enhances our visibility into our combined network.”
ArrowStream works with more than 275 restaurants encompassing 105,000 individual locations, as well as 1,200 distributors and 10,000 suppliers. Its software helps restaurants manage costs and inventory.
In 2020, Chicago-based ArrowStream was acquired by private-equity firm Tailwind Capital for an undisclosed amount. Tailwind invested in growing the company and is now selling it to the acquisitive Buyers Edge, which has been stocking up on supply chain management providers in recent years.
As part of the deal, ArrowStream CEO Raleigh McClayton is leaving the company. ArrowStream President Jeff Dorr will take charge of the service within Buyers Edge.
The deal is the latest sign of a shift in the restaurant supply chain industry, which has traditionally relied on old-fashioned pen and paper for processing transactions. Tech firms like Buyers Edge and others are bringing more digitization and data to those old-school practices.
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