Online ordering company Lunchbox is acquiring fellow provider NovaDine, taking a step forward in its goal of consolidating the restaurant tech industry.
Terms of the deal were not disclosed.
The companies offer similar tools, including online ordering, POS and third-party delivery integration and house accounts, but have historically worked with different types of restaurants. Most of Lunchbox’s clients are mid-market chains, while NovaDine’s customers include large brands like Firehouse Subs and Steak 'n Shake.
Under the acquisition, the two platforms' technology "will be combined as we consolidate operations," Lunchbox CEO Nabeel Alamgir said in an email.
The deal follows a $50 million fundraise for Lunchbox in February. The company had earmarked some of that capital for an acquisition, particularly one that would help extend its reach into big chains.
“As we continue to expand our operations, NovaDine will have a huge hand in taking us to the next phase of growth into enterprise markets,” Lunchbox CEO Nabeel Alamgir said in a statement. Lunchbox currently works with more than 100 mid-sized brands.
Alamgir also said after the fundraise that Lunchbox wanted to “consolidate the industry” to offer a more seamless product to restaurants, which typically have to patch together their tech stacks from multiple vendors.
“NovaDine has built an entire platform that enables the operator to manage all digital orders from a single operating system,” Alamgir said in a statement.
Founded in 2007, Raleigh, N.C.-based NovaDine is one of the older companies in the online ordering space. Lunchbox is expected to help it reach more customers and strengthen its offerings, particularly on the marketing side.
“Lunchbox's incredible marketing and sales team will allow us to unlock the full potential of the products we offer to our customers,” said NovaDine President George Istfan in a statement. “We’re also really looking forward to adding a robust marketing component to the business and see the full potential of our platform to come to life.”
It’s the second acquisition for New York-based Lunchbox, which bought the online restaurant marketplace Spread last August.
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