MALVERN, PA -- Cashless vending leader USA Technologies Inc. announced today that it has acquired the cloud-based content and device platform of Portland, OR's VendScreen Inc. USAT paid about $5.6 million in cash for Vendscreen's assets, which include its customer base and intellectual property, in a transaction that closed on Jan. 15. USAT used approximately $2.6 million in cash on hand, with the balance funded by converting $3 million drawn from its line of credit into a term loan.
VendScreen Inc. develops and markets retrofit touchscreen devices for vending machines, which also support cashless and mobile payments. Devices are enabled by a proprietary cloud-based computing system that displays real-time product information like nutritional facts and onscreen promotions. Devices can also support centralized remote monitoring.
USAT said that VendScreen had more than 120 customers with about 4,200 active connections as of November. Its devices have been certified, integrated and operable with USAT's ePort service for the past year. USAT has a customer base of more than 10,000 (350,000+ connections). USAT's acquisition is said to pair a powerful interactive media system and an extensive NFC footprint in the United States.
"If 2015 was the year of mobile payments, 2016 is going to be the year of consumer engagement," said USAT chairman and chief executive Stephen P. Herbert. "As consumers and retailers become more accustomed to cashless and mobile payments, companies want to leverage information provided through a cashless and mobile payments environment to engage with the consumer at point-of-sale.
"Whether it's vending operators, retail, brand or technology partners, corporations are looking for ways to move beyond a simple transaction," Herbert continued. "Our acquisition of VendScreen's technology further connects our partners and customers directly to the consumer at point-of-sale, and the possibilities are limitless.”