Serent Capital Announces Acquisition of Compeat by Restaurant365 and Joins as a Shareholder of the Combined Company

Serent Capital Announces Acquisition of Compeat by Restaurant365 and Joins as a Shareholder of the Combined Company

Acquisition creates a market leader in restaurant management software

June 16, 2021

  • Serent portfolio company Compeat has been acquired by Restaurant365
  • As part of the transaction, Serent Capital is now a shareholder of Restaurant365

Restaurant365, the leading all-in-one restaurant management platform, today announced the acquisition of Compeat, well-known in the industry for pioneering feature-rich restaurant back office, workforce and business intelligence software. The combined business will be led by Tony Smith, CEO of Restaurant365, and will serve over 28,000 restaurants. The acquisition extends Restaurant365’s leadership in the space and further enables its commitment to helping restaurants thrive. As part of the transaction, Serent Capital is becoming a Restaurant365 shareholder alongside Bessemer Venture Partners, ICONIQ, and Tiger Global Management.

Compeat’s platform helps restaurants operate more efficiently, enhance profitability, and improve the customer and employee experience. Over the last six years, Compeat has more than doubled its team, developed and launched CompeatPay, a payments product, and grew recurring revenue by over 600%.

“The last year has been full of challenges for the restaurant industry due to the COVID-19 pandemic, but restauranteurs are tenacious and we’re in awe of their incredible creativity to adapt,” said Smith. “We provide technology to support their ingenuity and see this as the perfect time for this bold move to expand our offering and help restaurants rethink and streamline their operations.”

“A love for serving the restaurant industry is built into the DNA of our organization,” said Brendan Reidy, CEO of Compeat. “In Restaurant365 we found a similar-minded group, very complementary in solutions and in approach. We’re thrilled to unite with them to accomplish this important mission.”

“We’ve spent a significant amount of time in the restaurant technology market and it became clear that Compeat and R365 together could create a truly special company to serve the needs of restauranteurs across the country,” stated Kevin Frick, Co-Founder and Partner at Serent Capital. “The R365 team has achieved impressive growth, and we look forward to seeing the success that’s in store for the future as we continue to back the combined platform.”

Restaurant operators have long been underserved by generic software solutions. Compeat and Restaurant365, from their inceptions, share a common heritage of focusing all of their attention and solutions to this industry only. Customers often see a 2-5% reduction in food and labor costs by administering their accounting, payroll, operations and purchasing in one unified platform. Equally important, the time savings allows restaurant operators to focus on providing their guests an exceptional dining experience. Already the most comprehensive platform to simplify day-to-day restaurant management, Restaurant365 is excited to now deliver an even broader set of capabilities.

“We have a lofty vision to transform how restaurants operate and this combination significantly expands our market share and resources,” said Smith. “Compeat is full of incredible employees that we can’t wait to welcome to our team to grow this business together.”

William Blair and Goodwin Procter LLP served as financial and legal advisors, respectively, to Restaurant365. Robert W. Baird & Co and Choate, Hall & Stewart and Polsinelli served as financial and legal advisors, respectively, to Serent Capital and Compeat.

Restaurant operators can learn more about Restaurant365 by scheduling a demo here.

Serent Capital invests in growing businesses that have developed compelling solutions that address their customers' needs. As those businesses grow and evolve, the opportunities and challenges that they face change with them. Principals at Serent Capital have firsthand experience at capturing those opportunities and navigating these difficulties through their experiences as CEOs, strategic advisors, and board members to successful growing businesses. By bringing its expertise and capital to bear, Serent seeks to help growing businesses thrive. Learn more about our portfolio companies.

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