CHEQ, a Seattle startup that sells point-of-sale software to sports stadiums and entertainment venues, announced Thursday it was acquired by Cantaloupe, a Philadelphia-area company specializing in self-service retail technology.
CHEQ launched in 2021 and inked deals with a number of sports franchises including the NFL’s Washington Commanders and the NHL’s Florida Panthers. It developed software for mobile apps and self-service kiosks that aimed to drive sales for vendors while shortening wait times for customers.
The company also had a social gifting features that let users “gift” items to others, and integrated its technology into the Bite of Seattle food festival last summer.
Terms of the deal with Cantaloupe were not disclosed.
Previously founded in 1992 as USA Technologies, Cantaloupe’s software is used in vending machines; car charging stations; laundromats; parking terminals; kiosks; and more. The publicly traded company reported $62.7 million in revenue for its most recent quarter, up 8% year-over-year.
“We are looking forward to joining Cantaloupe and continuing our mission of delighting guests with a best-in-class on-premise payments experience,” CHEQ CEO and co-founder Thomas Lapham said in a statement.
Lapham is a former CEO and board advisor of Asia Clean Capital, a solar panel developer in China. He launched CHEQ with CTO Jim Castillo, a former software engineering leader at OpenTable; and Chief Revenue Officer Jake Stone, who previously worked as CRO at Independent Sports.
CHEQ — not to be confused with Tiger Global-backed cybersecurity company CHEQ — raised $8 million last year. Investors include WestRiver Group, Harvard’s Yard Ventures, and others.
The company received criticism for its management of Bite of Seattle last year, as attendees complained about purchasing options and wait times. CHEQ acquired the rights to the festival last year, and recently sold the event to FoodieLand.
M&A activity slowed in 2023 but some analysts and industry experts predict an increase in startup acquisitions this year as interest rates stabilize and companies look for alternatives to raising more investment, going public, or shutting down. Seattle digital rewards startup Tango Card announced this week that it will be acquired.
