Heartland Payment Systems, the fifth-largest payments processor and provider of merchant business solutions announced the acquisition of Dinerware and pcAmerica, two point-of-sale companies with solutions covering various hospitality and retail segments. The terms of the deal were not revealed.
Heartland Chairman and Chief Executive Officer Bob Carr said in a statement, “the acquisitions of pcAmerica and Dinerware, combined with Xpient, Liquor POS and other Hearthland products and services, will enable us to offer unique integrated commerce capabilities that are effective, secure and simple to use. With the EMV shift around the corner and the increased emphasis on security, Heartland is not uniquely positioned to offer our capabilities to an additional 90,000 business locations with this new division.”
It is part of Heartland’s push to form a new Heartland Commerce division that will offer merchants point of sale systems along with payment processing capabilities. Founded in 2000, Dinerware products are sold through an authorized dealer network in North America and the UK along with a network of partners in Middle East and Southeast Asia.
Dinerware and pcAmerica, together with Heartland’s existing POS businesses Xpient Solutions, Liquor POS, Leaf and other Heartland solutions are combining to create Heartland Commerce. The segment will deliver POS solutions, payments processing capabilities and other adjacent business service applications, initially serving the hospitality and retail industry.
Now with more than 120,000 restaurant merchant relationships, Heartland has 15% share of the entire restaurant market, including a 20% share of Table Service restaurants. From payroll, to card processing to POS solutions, Heartland is rapidly expanding its restaurant franchise, supported by the endorsement of forty-six state restaurant associations as well as the National Restaurant Association.
Dinerware and pcAmerica are each in the process of completing their development of cloud-based POS systems that complement their already established on-premise solutions. These cloud-based POS systems will overlap with what is being developed by Leaf; consequently, Heartland decided that it will stop POS development efforts at Leaf, though certain elements of Leaf’s capabilities will become part of Heartland Commerce, and write down related POS assets. In its fourth quarter just ended, the company recorded $41.4 million pre-tax, $37.6 million after-tax or $1.02 per share, in asset impairment charges as a result of an analysis of the values ascribed to investments at Leaf and in Prosper, its internally-developed POS software technology, as well as its investment in TabbedOut, a mobile payments provider. All charges are non-cash.