New York PE firm takes majority stake in Houston restaurant software company

A New York-based private equity firm has bought a majority stake in the Houston-based company HungerRush, a cloud-based software provider for restaurants. Terms of the agreement were not disclosed.

Corsair Capital, the new majority shareholder, bought out its stake in The CapStreet Group, a Houston-based private equity firm. CapStreet, which first invested in the tech company in 2018, retains a minority stake in HungerRush.

“HungerRush is at the forefront of digital transformation in the restaurant industry. We see tremendous growth potential given its highly differentiated technology architecture, impressive sales momentum and customer pipeline, as well as numerous upsell and cross-sell opportunities,” said Jeremy Schein, Partner at Corsair, in a statement. Press release.

Founded in 2003 as Revention, HungerRush offers a point-of-sale system that includes payment processing, digital ordering, customer engagement, and delivery management features. Customers of the HungerRush 360 product are primarily quick-service and fast-casual restaurant operators with multiple locations.

The dealreported that HungerRush is on track to hit $100 million in annual recurring revenue in 2022.

Last year, HungerRush acquired two companies: Menufy based in Overland Park, Kansas and New York-based 9Fold. Menufy provides software for restaurant takeout and delivery, and 9Fold provides software for restaurant ordering and marketing. A year earlier, HungerRush purchased Ann Arbor, Mich.-based OrdrAI, a provider of text and voice ordering technology for restaurants.

Perry Turbes, CEO of HungerRush, will continue to lead HungerRush. Current shareholders, including the management team, will inject a significant portion of their equity into the deal with Corsair.

Corsair’s investment “provides HungerRush with an opportunity to capitalize on organic and inorganic growth opportunities, enhance our product offerings and go-to-market strategy, and continue to support customers with comprehensive solutions for payment and restaurant management solutions individually tailored to their values ​​and business goals,” says Turbes.

Raymond James was Corsair’s financial advisor and Simpson Thacher & Bartlett was its legal advisor. William Blair was financial advisor to HungerRush and CapStreet, and Willkie Farr & Gallagher was their legal advisor.