PSG Equity said it completed the sale of a minority stake in SevenRooms on June 16 to DoorDash as part of the food delivery service’s $1.2 billion acquisition of the customer relationship management technology company.
PSG didn’t disclose terms of the divestiture. The Boston-based private equity firm initially invested in SevenRooms in 2020 and said it helped the company expand to more than 13,000 venues and customers from 2,000 five years ago. Providence Equity Partners created PSG about a decade ago to focus on lower middle-market technology firms.
In early May, DoorDash agreed to buy SevenRooms, a hospitality technology provider that got its start in New York in 2011, as a way to improve the customer experience.
SevenRooms said its technology helps restaurants, hotels, and other businesses “deepen guest relationships, streamline operations, and drive revenue growth.” Some of its clients include Marriott International, MGM Resorts International, Mandarin Oriental Hotel Group and Wynn Resorts.
In addition to acquiring SevenRooms, DoorDash recently purchased Deliveroo, a British food delivery company, for about $3.8 billion. Deliveroo also operates in France, Belgium, Ireland, Italy, Singapore, the United Arab Emirates, Kuwait and Qatar. DoorDash is also expanding its drone delivery options in Charlotte and its sidewalk robot delivery in Chicago and Los Angeles, while launching new AI-powered advertising platforms.
Weil, Gotshal & Manges LLP acted as legal counsel to PSG, with David Gail leading the transaction from Dallas. Madeleine Carpenter, an associate in Weil’s Dallas office, was also on the team.
Goodwin Procter served as legal advisor to SevenRooms, and William Blair served as financial advisor.
A&O Shearman served as legal advisor to DoorDash.