To fill retail vacancies, IBM wants to acquire POS service provider Revel

On August 2, it is reported that in order to further enter the retail industry, IBM is discussing the acquisition with POS service provider Revel Systems. According to people familiar with the matter, the contact between the two companies is still in its infancy, and the initial negotiation may be Revel's POS system with iPad as the operating platform.

The acquisition of Revel will help fill the gap in IBM's retail service product line. In 2012, IBM sold its POS terminal business to TOSHIBA TEC for more than $800 million. As the financing environment has become more severe and its valuations are declining, Revel has become one of the start-ups seeking suitable buyers.

Both Revel and IBM declined to comment.

According to research firm Dealogic, in the first half of 2016, the total acquisitions of the technology industry reached $295 billion. Microsoft's acquisition of large-scale transactions such as LinkedIn has attracted the most attention. According to PricewaterhouseCoopers, companies with a valuation of no more than $500 million accounted for 69% of total transaction volume in the second quarter of 2016.

In 2010, Revel was founded by Lisa Falzone and Chris Ciabarra. Last year, Revel raised $128 million and its valuation exceeded $500 million. The company has 750 employees and has not disclosed its revenue to date. At the end of 2012, Revel said the company was in a profitable state.

Currently paying for Ravel software services include restaurants such as Cinnabon Restaurant, Tully's Coffee Chain, and non-profit organization Goodwill Industries. Ravel software provides POS services such as order entry, cash register and payment processing. The software can also be used to manage employee scheduling, payroll, inventory, and accounting, and can be implemented by integrating third-party applications such as Intuit and Expensify.

Financial software vendors Intuit, venture capital DCM, ROTH Securities and Wales are all investors in Ravel.

In June of this year, Mark Anderson of venture capital firm Anderson Horowitz said, "We expect that the acquisitions in the next four years or in the negotiations will be more than expected."

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