Nucor earnings beat by $0.08, revenue fell short of estimates
MALVERN, Pa. - Cantaloupe, Inc. (NASDAQ: CTLP), a provider of technology solutions for self-service commerce, has entered into a definitive agreement to be acquired by 365 Retail Markets, LLC in an all-cash transaction valued at approximately $848 million, according to a press release statement. The company, which currently maintains a market capitalization of $694 million and boasts a "GREAT" financial health score according to InvestingPro, has demonstrated strong operational performance with a 12.5% revenue growth over the past year.
Under the terms of the agreement, Cantaloupe shareholders will receive $11.20 per share in cash, representing a 34% premium to the company’s closing stock price on May 30, 2025. The offer price appears aligned with fundamentals, as InvestingPro analysis shows the company is currently undervalued with strong financial metrics, including a healthy current ratio of 1.79 and impressive return on assets of 17.35%. Upon completion of the transaction, Cantaloupe will become a privately-held company. For detailed analysis of 1,400+ stocks like CTLP, including comprehensive valuation metrics and expert insights, explore InvestingPro’s Research Reports.
The combination aims to create a comprehensive unattended retail platform by merging Cantaloupe’s payment processing and software services with 365’s self-checkout technology. The combined entity will serve customers across convenience services, retail, hospitality, and sports and entertainment in North America, Latin America, and Europe. Cantaloupe brings strong operational efficiency to the merger, with a return on equity of 28% and consistent profitability over the last twelve months.
"A rapid transformation in unattended retail is underway right now as our customers look for more sophisticated ways to grow their business," said Ravi Venkatesan, CEO of Cantaloupe.
The transaction, unanimously approved by Cantaloupe’s Board of Directors, is expected to close in the second half of 2025, subject to shareholder approval and regulatory clearances. Shareholders representing approximately 14% of Cantaloupe’s voting power have agreed to vote in favor of the transaction.
365 Retail Markets is a portfolio company of Providence Equity Partners, a private equity firm focused on media, communications, education, and technology investments. The transaction is not subject to a financing condition, as 365 has secured fully committed financing.
J.P. Morgan Securities LLC is serving as financial advisor to Cantaloupe, while William Blair is advising 365 and Providence.
In other recent news, Cantaloupe Inc. announced its first-quarter 2025 financial results, showcasing a notable earnings beat but falling short on revenue expectations. The company reported an earnings per share (EPS) of $0.65, significantly surpassing the forecasted $0.09, primarily due to a $42.2 million tax asset valuation release. However, revenue was reported at $75.4 million, missing the anticipated $79.83 million. Despite the earnings success, the revenue shortfall appeared to weigh on investor sentiment. Cantaloupe also revised its fiscal year 2025 revenue guidance to a range of $322-$328 million, indicating a growth of 13-15%. The company expects adjusted EBITDA between $46-$50 million and total operating cash flow of $24-$32 million. Additionally, the company highlighted strong growth in its SmartStore segment, which is expected to play a significant role in future sales. During the earnings call, it was noted that adverse weather events impacted transaction revenue by approximately $2 million, and there was a rebound in equipment sales in April.
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