Latest press releases have confirmed Groupon (NASDAQ:GRPN) to have sold off its restaurant point-of-sale business, Breadcrumb to restaurant-technology company, Upserve.
However details regarding terms of the all-stock deal were not presented.
The only information obtained states that under new union, Group is likely to hold a minority stake in Providence, R.I based Upserve.
On overviewing past, Group had acquired *Breadcrumb worth an anonymous amount in year 2012 – months prior making its announcement.
(*generator of cloud-based software that is utilized mostly by iPads in restaurants, cafes and bars. Moreover, restaurants manage menus, labor costs and bill-payments via it)
The sales were a result of attempts made to streamline the online marketplace’s business.
“As we’ve continued to focus and streamline our business, we’ve taken a close look at our operations to determine where winning is material to the long-term future of Groupon, as well as the investments required for success. Breadcrumb is a great product, and Point of Sale is an interesting space, but it’s also very fragmented and highly competitive.” – Spokesman, Bill Roberts
As per his own observation, the recent acquisition followed the same pattern of sales that took place at the time of Korea-based Ticket Monster when the company had released control of its Indian business unit.
A look inside
Breadcrumb has about 50 employees following at least two staff reductions in the past year that cut its workforce in half, one as recently as March. Moreover, founder Seth Harris left the company in August – as what press was informed.
Information obtained last week stated Groupon to have cut approx. 30 workers from its customer service team, mainly in Chicago.
UPDATE: Breadcrumb’s employees will join Upserve at its headquarters as well as in offices in San Francisco, Chicago and New York. In collaboration, the companies will serve 6,000 restaurants across the country.
