American Express has acquired Tock, the restaurant reservation platform, from Squarespace, a website building and hosting solution, for 400 million, which is just the same amount Squarespace paid for the restaurant reservation service in 2021.
American Express's Tock acquisition is a strategic move that enhances its dining services, strengthens its market position, and provides numerous operational and technological benefits. This acquisition aligns with the company's goal of offering premium and integrated services to its cardholders, creating a unique dining experience, and expanding dining services globally.
The Tock deal comes a month after private equity giant Permira announced plans to acquire Squarespace, a leading site builder and hosting firm, and take it private in a deal worth a whopping $6.9 billion. According to TechCrunch, that monstrous Squarespace deal is expected to close in Q4 2024.
A quick look at Tock
Founded in 2014, and based in Chicago, Tock provides reservation, and event management tools to over 7,000 restaurants, wineries, and other bookable venues. The company was acquired by Squarespace in 2021 for a whopping $400 million. Squarespace, a leading software hosting solution for small businesses, acquired Tock for $400 million in 2021, shortly before going public on the NYSE.
American Express's acquisition of Squarespace's Tock restaurant reservation system is a strategic move that offers multiple benefits:
Enhance dining capabilities: With Tock's advanced reservation and management system, American Express can offer its cardholders a more seamless and personalized dining experience. This could include easier reservations, special access to exclusive events, and tailored dining recommendations.
Enhance reservation management capabilities: American Express can leverage Tock's platform to cross-promote other Amex services, such as travel bookings, event tickets, and premium experiences, creating a more integrated and holistic customer journey. Additionally, Tock's efficient reservation and management system can streamline operations for restaurant partners, enhancing their productivity and customer service. This can lead to stronger relationships between American Express and its partner restaurants.
Strengthening market position: Acquiring a leading reservation system gives American Express a competitive edge over other financial service providers who do not offer such integrated dining solutions. It differentiates Amex's card offerings, particularly for high-net-worth individuals and frequent travelers.
New revenue growth: The Tock acquisition opens up potential new revenue streams through subscription models for restaurants, premium dining experiences for cardholders, and partnerships with other hospitality providers.
American Express and Squarespace are teaming up to work on the AmEx Offers program as part of the Tock transaction. The two companies will collaborate to enhance value for small businesses using American Express Cards.
In addition to the Tock deal, the US-based global financial service also acquired Rooam, a mobile payment and ordering service that integrates with POS systems. Financial terms of the Rooam deal were not disclosed to the public.
Founded in 2015, Rooam is a technology firm that powers mobile payments, ordering, and integrations with POS systems and marketing and loyalty systems used by restaurants and entertainment businesses. The Rooam deal will enhance American Express’s mobile ordering and payment capabilities.
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