Par purchase of Delaget ‘little on the pricey end,’ says Lake Street

After Par Technology (PAR) announced its acquisition of Delaget for $132M, which was principally paid in shares of Par common stock, Lake Street analyst Eric Martinuzzi said the firm views the transaction for the provider of analytics and back office software for enterprise restaurants as “a little on the pricey end,” but also as one that should open the door for more cross- sell opportunities and improved customer retention. The firm estimates Delaget’s growth rate at mid-teens, but believes it can improve to 20%-plus given Par’s better market access and cross-sell capabilities. The firm maintains a Buy rating and $82 price target on Par shares.