DoorDash has bought hospitality software company SevenRooms in an all-cash transaction valued at approximately $1.2 billion as it looks to expand its merchant services beyond food delivery.

Parisa Sadrzadeh, VP of strategy and operations at DoorDash, says the acquisition aims to give restaurants and hospitality operators more tools to improve marketing and operational efficiency.

“SevenRooms gives local businesses around the globe new ways to bring more guests in the door, build and grow direct relationships with their customers, access best-in-class CRM, and drive profitability through smarter marketing,” she added.

SevenRooms was founded in 2011 and offers CRM-integrated tools for reservations, guest experience, and operations to restaurants, hotels, and venues.

CEO and co-founder Joel Montaniel said the partnership would help its clients thrive in an “increasingly omnichannel” world.

“With DoorDash, we’re equipping restaurants with the tools to own the guest experience, grow their customer base, and thrive inside and outside the merchant’s four walls,” Montaniel said.

SevenRooms will operate under DoorDash while gaining access to its global scale and resources. Both companies said they remain committed to maintaining an open, partner-friendly ecosystem.

DoorDash’s acquisition of SevenRooms coincided with a strong first-quarter earnings report for the three months ended March 31.

Total orders rose 18 per cent year-over-year to 732 million, while marketplace gross order value (GOV) increased 20 per cent to $23.1 billion. Revenue climbed 21 per cent to $3 billion.

GAAP net income reached $193 million, a turnaround from a $23 million loss during the same period last year. Adjusted EBITDA also improved, rising to $590 million from $371 million.

Alongside the SevenRooms deal, DoorDash also revealed its plans to acquire UK-based food delivery platform Deliveroo.