Waitr to Acquire POS, Software Business Cova
Aggregator and digital ordering technology company Waitr Holdings Inc. signed a non-binding letter of intent Friday, December 17 to acquire a cannabis-focused point-of-sale (POS) software platform, inventory and Retail Innovation Labs Inc. dba Cova.
“We believe the Cova POS solution will be symbiotic with our recently acquired Cape Payments business, as we estimate the annualized gross market value of cannabis transactions processed on the Cova platform at approximately $2.3 billion, based on recent performance,” Carl Grimstad, Waitr CEO and Chairman, said in the joint announcement.
Approximately 2,000 dispensaries in Canada and the United States use Cova’s software platform.
“We believe we may be able to adapt the Cova POS solution for restaurants to offer our restaurant base an integrated solution for in-house and food delivery services,” Grimstad said.
Waitr’s letter of intent includes a proposed purchase price of $90 million to be paid in cash and company common stock, subject to customary adjustments. Signing the letter does not guarantee that the companies will reach a definitive agreement or whether an agreement will lead to the acquisition closing on the same terms – or at all.
Waitr and Cova must complete legal, regulatory, business and financial verification, as well as other customary conditions and approvals.
Waitr also acquired the ASAP.com domain name and reserved the Nasdaq ASAP trading symbol as part of a company rebranding.
“The combination of our industry-leading cannabis retail technology with Waitr’s on-demand delivery logistics network and payments expertise is a perfect match,” said Gary Cohen, CEO of Cova, in the ad. “Waitr and Cova share the same values: we put the retailer first and believe that no one should come between them and their customers.
“This should allow dispensary retailers using Cova software to grow and prosper.”
Related: Restaurant POS Consolidation Proves Systems Need to Do More Than Just Process Payments
Last month, Waitr announced its partnership with payment processing company Shift4 to bring Shift4’s Harbortouch POS system to its restaurant customers in 2022.