American Express Company (NYSE: AXP) has agreed to purchase Tock, a technology company known for reservation, table, and event management solutions, from Squarespace, Inc. (NYSE: SQSP) for $400 million.
Tock, launched in Chicago in 2014 and acquired by Squarespace in 2021, provides reservation, table management and event ticketing tools to approximately 7,000 restaurants, wineries, and other bookable venues.
As part of the agreement, American Express and Squarespace will collaborate to enhance value for small businesses using American Express Cards, which includes leveraging the Amex Offers program (digital card-linked offers) and providing Card Member benefits.
The transaction is contingent upon standard closing conditions, which include regulatory approval.
Apart from this, American Express also announced a deal to acquire Rooam for an undisclosed amount. Rooam is a technology firm specializing in mobile payments and integration with point-of-sale, marketing, and loyalty systems for restaurants and entertainment venues.
Howard Grosfield, President, U.S. Consumer Services, American Express stated, "Now, we can connect even more premium customers with the most exciting restaurants, while providing merchants and restaurants more technology to help their businesses thrive. We will be able to offer restaurants the tools to deliver more personalized hospitality, facilitate pre-paid experiences like tasting menus, and provide more convenient ways for customers to pay the bill."
Pablo Rivero, Vice President, American Express Global Dining, CEO Resy, stated, "From our acquisition of Resy in July 2019 through year-end 2023, we've increased the number of engaged diners by 3x, increased the number of restaurants by 5.4x and driven solid growth in diners seated."
Investors can gain exposure to AXP via Amplify ETF Trust Amplify Mobile Payments ETF (NYSE: IPAY) and ALPS Global Travel Beneficiaries ETF (NYSE: JRNY).
Price Action: AXP shares are down 0.53% at $229.00 at the last check Friday.