Pay By Touch, a San Francisco start-up seeking to allow shoppers to pay with their fingerprint at the register, has bought the company behind S&H Green Stamps.
Pay By Touch will pay more than $100 million in cash and stock to acquire S&H Solutions of Delray Beach, Fla. The Mercury News has a good summary. We’re not sure how S&H, which is a customer loyalty company, fits into Pay By Touch fingerprint go-to-market strategy, but Pay By Touch says it is acquiring companies to grow, and so it may be becoming a “roll-up” company less focused on fingerprint technology than we initially thought. It may want to introduce its fingerprint technology to customers by buying up companies that have relationship with those customers, so Green Stamps may make sense in this context. But buying with such a huge purchase price, instead of partnering, is a bold way to do it.
Here’s the press release. There on the left-hand rail, you’ll see an impressive number of deals the company has cut recently.
We’ve written before about Pay By Touch, and its massive fund-raising before. It has raised $190 million over the past 15 months, so presumably a good chunk of that is being used for this acquisition.
The company had also suggested we’d see the company enter California this year. However, there are still no stores using its technology in the Bay Area. At least, that’s our conclusion after typing in our zip code and getting nothing back from the store locater.
We’re trying to put our finger on Pay by Touch’s strategy.
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