DaySmart Software

DaySmart Software

DaySmart Software was founded in 1999 and is headquartered in Ann Arbor, Michigan, with an additional office in Scottsdale, Arizona. CEO Pat Shanahan leads the company, which has been backed by private-equity sponsors throughout its growth trajectory. The company builds and acquires business-management software for service-based small and medium businesses. Its suite covers appointment scheduling, point-of-sale payment processing, customer relationship management, and marketing automation. Vertical coverage spans salon and spa operators under the Salon Iris and Orchid Medical Spa brands, pet groomers and boarders via 123Pet and Kennel Connection, and tattoo shops through the BookedBy platform. The company processes billions in annual payment volume through its integrated DaySmart Pay solution. TA Associates acquired DaySmart in 2020. Three years later, in December 2023, GI Partners acquired the company from TA Associates. That transaction confirmed DaySmart's scale as a roll-up platform with a customer base exceeding 200,000 businesses. The firm has completed multiple add-on acquisitions, including the 2022 purchases of Salon Iris, 123Pet, and Orchid Medical Spa, signaling an active buy-and-build strategy under PE ownership. DaySmart's structural differentiator is its focus on payment-monetized vertical SaaS. Unlike generic point-of-sale providers, the company embeds proprietary payment processing directly into industry-specific workflows, creating a recurring revenue stream tied to transaction volume rather than seat licenses alone. This model shifts the economic profile from pure subscription software toward a payments-and-software bundle that benefits from both software gross margins and payments float economics.