Squarespace Buys Tech Startup Tock for $400 Million Plus
(Bloomberg) -- Website-hosting service Squarespace Inc., a $10 billion company that has confidentially filed for an initial public offering, is buying restaurant-services provider Tock for more than $400 million.
Squarespace paid a mix of cash and stock for the Chicago-based company, which provides technology for online reservations, takeout and other services, according to a statement Wednesday obtained by Bloomberg News.
“E-commerce within the restaurant and hospitality industries is a large and growing market opportunity,” Anthony Casalena, Squarespace’s chief executive officer, said in a statement. “I’ve long admired Tock’s vision to re-imagine how reservation-based businesses connect with their customers.”
The acquisition helps Squarespace, which is known for helping consumers build websites, move into the hospitality technology space.
Squarespace, which said it confidentially filed for an IPO in January, announced this month that it had raised $300 million at a valuation of $10 billion.
Tock was started in 2014 by its CEO, Nick Kokonas, and is backed by investment firms including Valor Siren Ventures and Origin Ventures, according to a statement last year. The startup raised $10 million in 2020 and it has 140 employees.
“Combining Tock’s unified platform and years of hospitality industry expertise with Squarespace’s reach, resources, and design-forward products, in our view, creates an opportunity to deliver a best-in-class solution to millions of entrepreneurs and small businesses,” Kokonas said in a statement.
Squarespace said Tock serves 7,000 hospitality operators ranging from neighborhood pizzerias to Michelin-starred restaurants and wineries in 30 countries. It also helps its hospitality clients communicate with customers and to dynamically set prices to increase sales.
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