American Express Acquires Tock for $400 Million
American Express (AXP.N) is set to enhance its influence in the dining sector with the purchase of Squarespace's (SQSP.N) restaurant booking platform, Tock, for $400 million. This strategic acquisition, announced on Friday, aims to bolster the credit card giant’s foothold in a market where it facilitated $100 billion in card spending last year.

American Express (AXP.N) is set to enhance its influence in the dining sector with the purchase of Squarespace's (SQSP.N) restaurant booking platform, Tock, for $400 million. This strategic acquisition, announced on Friday, aims to bolster the credit card giant’s foothold in a market where it facilitated $100 billion in card spending last year.
The all-cash deal builds on AmEx’s previous acquisition of the online restaurant reservation platform Resy in 2019. Resy provides AmEx cardholders with exclusive benefits, such as special reservations, early notifications, and cashback on certain bookings made through the platform. By integrating Tock, AmEx will add another 7,000 restaurants, wineries, and hospitality businesses to its network, enabling these establishments to better reach AmEx’s premium customers, who are known for their high spending habits.
American Express has a longstanding strategy of offering more perks to justify its higher annual fees compared to rivals, a crucial element in achieving its growth targets. By appealing to affluent consumers and increasing customer engagement, AmEx continues to solidify its position in the market. The acquisition of Tock is seen as a pivotal move in expanding these efforts.
In addition to Tock, AmEx is also acquiring Rooam, a contactless payments platform utilized by restaurants, bars, music venues, and other businesses. The financial details of this acquisition were not disclosed.
Squarespace, which bought Tock in 2021 for approximately $400 million, will receive the same amount from this sale. This transaction will streamline Squarespace as it prepares to go private in a nearly $6.9 billion deal with Permira.
So far this year, AmEx shares have surged by 23%, outpacing the near 15% rise of the benchmark S&P 500 index (SPX). This performance underscores AmEx's commitment to strengthening its market leader position and achieving its growth aspirations.
The acquisition of Tock will significantly expand AmEx's reach in the dining and hospitality sectors. This move aligns with the company’s broader strategy to diversify the perks it offers to its customers, thereby increasing customer loyalty and engagement. By integrating Tock and Rooam into its ecosystem, AmEx aims to provide even more value to its cardholders, fostering a deeper connection with its affluent customer base.
As AmEx continues to innovate and expand its offerings, these strategic acquisitions highlight its commitment to maintaining a competitive edge in the highly contested credit card market. The company’s focus on providing unique and valuable experiences to its cardholders is a testament to its dedication to customer satisfaction and business growth.
In conclusion, the acquisition of Tock for $400 million is a strategic move that will not only enhance AmEx's presence in the dining industry but also provide significant benefits to its premium customers. This acquisition, along with the purchase of Rooam, demonstrates AmEx's proactive approach in expanding its network and offering unparalleled perks to its cardholders. With these additions, AmEx is well-positioned to continue its growth trajectory and reinforce its market dominance.