Technology company Stuzo plans to woo Wawa after being sold to New York company for $190 million

“Next up is Wawa-chan!” Gunter Pfau, founder of Stuzo Holdings LLC, a Center City-based software company that provides a platform for transactions at a chain of convenience stores and gas stations, said with a laugh. On March 11, Fau sold Stuzo to Par Technology Corp. of New Hartford, New York, for $190 million in cash and stock.

Pfau said he believes that as part of Par, a larger publicly traded company, Stuzo will have an added advantage competing for contracts with Wawa and other major chains.

Many of Stuzo's customers are gasoline retailers and convenience store chains, including Chevron and Marathon Petroleum. Murphy US operates stores and fuel pumps near Walmart stores. Along with Yesway, Delek, and Circle K stores across the United States.

Delaware County-based Wawa, run by heirs of the founding Wood family and occasionally the subject of rumors of an initial public offering, recently began expanding nationally from its longtime East Coast market. Wawa uses other contractors and suppliers in the Philadelphia area, including Tastykake and Amoroso's.

Stuzo employs approximately 215 people, many of whom are technical staff based in Ukraine and other Eastern European countries. About 60 people are based at the company's headquarters, which includes a testing lab at 211 N. 13th St. near Reading Terminal Market, but most are currently working remotely.

“This is the third time I've sold this company,” said Pfau, who bought it in 2010 to private equity investors who then bought back Stuzo and then sold it to Chicago-based Lakeshore Capital in 2021. He pointed out that he had sold control to the Lakeshore agreed. The shares will be sold as part of the acquisition of Par Technology.

Private equity investments typically last between 5 and 10 years. Pfau said Lakeshore's partners weren't pressuring Stuzo to sell quickly, but they were willing to make a profit on an investment less than three years old as rising interest rates slowed the closing of venture deals. said.

In addition to the Stuzo acquisition, Par Technology simultaneously announced a second acquisition. Task, an Australian-based foodservice retail software maker that provides in-store transactions and loyalty rewards platforms, is being acquired for $206 million in cash.Tusk's customers also include Starbucks and McDonald's.

“Par's goal is to become the world's largest foodservice technology platform,” Par CEO Subneet Singh said in a statement.

Combined, Stuzo and Task's profits (excluding financial costs) over the past year totaled approximately $20 million on sales of more than $80 million. Par Technology's sales last year exceeded his $400 million. Singh acknowledged the expectation that the combined companies would be able to capture business in “important new markets.”

Par Stuzo's top manager will be Jake Kiser, who previously led Chicago-based Hatch Loyalty, another retail software company that Stuzo acquired in 2019.