Toast / xtraCHEF 2021
Toast acquired xtraCHEF for $60M on July 21, 2021.
- Target
- xtraCHEF
- Acquirer
- Toast
- Deal value
- $60M
- Deal type
- Mixed
- Announced
- July 21, 2021
- Sub-sector
- Vertical SaaS Payments
Transaction overview
- Toast announced the acquisition of xtraCHEF on July 21, 2021, for approximately $60 million.
- Consideration was a mix of cash and Toast stock.
- The deal closed simultaneously with announcement on July 21, 2021.
- xtraCHEF is a New York-based restaurant back-office software company focused on invoice processing and food cost management.
- xtraCHEF served thousands of restaurant locations across the United States at the time of acquisition.
- Toast is a Boston-based restaurant technology company offering point-of-sale, payments, and restaurant management software.
- Toast acquired xtraCHEF to add invoice management and food cost analytics to its existing restaurant platform.
- The deal came roughly two months before Toast's IPO on the NYSE in September 2021.
Why it matters
- The acquisition extended Toast's platform into back-of-house cost management, an area previously outside its core POS and payments offering.
- Completing the deal weeks before its IPO signaled Toast's intent to broaden revenue per restaurant customer beyond transaction fees.
Strategic rationale
Toast adds back-office invoice automation and cost management for restaurants, expanding from POS into operating-system functionality.
Deal terms & multiples
About xtraCHEF
xtraCHEF was a New York-based software company that automated accounts payable and food cost management for restaurants. Its platform ingested supplier invoices, parsed line-item data, and surfaced cost analytics to help operators track food spend against budget. The company served independent restaurants and multi-unit groups across the United States. xtraCHEF was founded in 2015 and had raised venture funding before the Toast acquisition.
- Founded
- 2015
- HQ
- United States
- Prior funding
- Approximately $7 million raised in venture funding prior to acquisition
- Key metric
- Served thousands of restaurant locations across the U.S. at time of acquisition
About Toast NYSE: TOST
Toast is a Boston-based restaurant technology company founded in 2011. Its platform covers point-of-sale hardware and software, payment processing, online ordering, payroll, and scheduling for food-service operators. The company went public on the NYSE in September 2021 under the ticker TOST, raising roughly $870 million in its IPO. Toast reported annualized recurring revenue of approximately $494 million as of its IPO filing.
- Founded
- 2011
- Ticker
- NYSE: TOST
Frequently asked questions
How much did Toast pay for xtraCHEF?
Toast paid approximately $60 million in a mix of cash and stock. The deal closed on July 21, 2021.
What does xtraCHEF do?
xtraCHEF automates restaurant invoice processing and food cost management. Its software parses supplier invoices and provides cost analytics to restaurant operators.
Why did Toast acquire xtraCHEF?
Toast wanted to add back-of-house cost management to its platform. xtraCHEF's invoice and food cost tools complemented Toast's existing POS and payments products.
When did the Toast and xtraCHEF deal close?
The deal closed on July 21, 2021, the same day it was announced.
Was Toast public when it acquired xtraCHEF?
No. Toast completed the xtraCHEF acquisition roughly two months before its NYSE IPO in September 2021.
Where is xtraCHEF headquartered?
xtraCHEF was headquartered in New York, New York.
Sources
- pos.toasttab.com /news/toast-acquires-xtrachef