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Velocity, the restaurant payment app based in the UK, has acquired its US competitor Cover (Terms were not disclosed). Cover had raised as much as $7m in funding before being acquired. The acquisition comes weeks after Velocity raised $15m.
The sale of Cover comes as the number of startups serving the restaurant industry explodes. Restaurants, nightclubs, and venues are inundated with tech companies knocking on their doors offering disparate services, says Velocity co-founder and co-CEO Zia Yusuf. There are reservation apps, payment apps, ticketing apps, loyalty apps, point of sale systems, CRM (customer relationship management) systems and analytics systems. It’s a lot for even the most sophisticated, tech-forward small business owner to handle. “They want to see consolidation in this space,” Yusuf says. With its acquisition of Cover, Velocity kicks off the deal action. “There are a lot of people chasing this market and we’re not all going to win,” adds Cover co-founder Mark Egerman. “Teaming up with a world-class company in this market with complementary products prevents them from competing with us in the U.S....
http://fortune.com/2015/09/22/cover-velocity-restaurant-tech/
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