365 Retail and Cantaloupe Divest Three Square Market to Win FTC Approval

*TL;DR 365 Retail and Cantaloupe will divest Cantaloupe’s Three Square Market unit, a condition set by the U.S. Federal Trade Commission to approve their merger.

Context The FTC reviews mergers for antitrust concerns, blocking deals that could reduce competition. In the self‑checkout technology sector, 365 Retail and Cantaloupe’s combined market share raised red flags. The agency demanded a remedy before granting clearance.

Key Facts - On May 1 2026, the companies announced a settlement with the FTC. - The agreement requires the sale of Three Square Market, a Cantaloupe subsidiary that provides self‑checkout solutions to grocery retailers. - The divestiture satisfies the FTC’s request and removes the regulatory obstacle to the merger.

What It Means The forced sale separates a potentially competitive asset, preserving market options for grocery chains that rely on self‑checkout technology. Buyers of Three Square Market will inherit an established client base and technology platform, potentially reshaping the niche market.

For 365 Retail and Cantaloupe, the divestiture clears the way to combine resources, streamline product development, and expand national reach. The merger, once completed, could accelerate innovation in automated checkout, but the loss of Three Square Market may limit the combined entity’s bargaining power with large retailers.

Stakeholders should watch the auction process for Three Square Market, as the buyer’s identity will influence competitive dynamics. Regulators will also monitor post‑merger integration to ensure the settlement’s intent—maintaining competition—remains intact.