American Express has reportedly acquired UK-based restaurant payments company Cake Technologies in a deal worth around $13.3m.
The deal was completed last October and due to a preferential debt round and fees, only some shareholders profited, according to a report for TechCrunch which cites various sources. Following the closing of the deal, all of the employees of Cake have become American Express employees, the article states.
Cake is a mobile payments app for the restaurant and bar industry in London. Through the platform, users can access quicker payments by directly connecting them, while restaurants can improve service and build data around customers.
American Express hopes to onboard Cake and its technologies to collaborate on improving consumers service at restaurants, it said.
Previously, Cake has raised a total of ?4.5m in equity and ?1.4m in debt, the article states. The company raised a ?1m crowdfunding campaign in 2016, selling 9.1 per cent of its equity to 258 backers.
Earlier in the year, American Express Ventures contributed to the behavioural biometrics fraud protection and detection provider BioCatch.?
Earlier in the year, global payments platform for restaurants and hotels MyCheck was acquired by Tech Ventures. The company provides mobile terminals for restaurants that can help then accept digital transactions and compile data on the customer.
The payments and remittances sector was dominated by the e-commerce sub-sector. Point of sale businesses picked up the second largest amount of funding, receiving 23 per cent of the total capital injections.
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