PAR Technology Corporation (NYSE:PAR) Q2 2023 Earnings Call Transcript

I mean, I know it was sort of a challenge a few years ago to sell it because you were waiting for this contract to basically be one. But now you sort of have this multiyear pipeline on fast and you have gotten to a certain amount of scale and you have got the balance sheet. I mean, what is the holdup in terms of selling that government business and sort of making this a pure play for others for state the company as a standalone?

Savneet Singh: So there is no hold up. I think we have delivered, when we told the total shareholders, we want to deliver a year of strong growth from this contract. We needed to do that. That was important, so we would get the multiple there and now we have. So we are always focused on creating value. And as I have said many times over, I think it is very logical for part to make that decision, but I can’t say anything until we come out with that decision.

Adam Wyden: Can you can you comment on the tuck-in M&A? I mean, obviously, you did MENU, which obviously was sort of a technology investment that you basically are internally skunk working growth. But, I mean, there are plenty of companies now that are sort of orphaned in the VC world that are doing anywhere from $10 million to $40 million of ARR that might be able to leverage our public company costs and be acquired accretively and sort of help you sort of balance this sort of organic growth investment with cash flow and public company costs and whatnot. I mean, can you comment about, like, sort of what your, you said on the call, look, data central was good. Punchh was good. Those were sort of tucked-in. Those are nice scale businesses.

They are growing nicely and generating positive contribution margin. I mean, how do we think about sort of that next layer of products and sort of getting scale that way as well. I mean, is that is that something that is a 2023 possibility? And what is the quantum of M&A you think you can do over the next 12-months?

Savneet Singh: So, yes, I would say without question, I expect us to be in acquisitive. Now things can change and we won’t be, but we are excited by that opportunity. And you know, so we don’t, I don’t think we would look to buy something to offset public company costs because then you can literally buy anything that generates cash flow. I think we have to buy stuff that creates synergy within our existing product suite, within our customers and that is where you will great get the operating leverage on your sales and marketing, and hopefully your R&D over time. And we see a number of deals that we think are very, very interesting to us. And I think we are very interesting to the sellers. So you will see par active there, and I do expect that to happen.