February 11, 2015
Multi-Million Dollar Deal Was Rubber Stamped
Yelp! has filled its belly while emptying its wallet in the multi-million dollar acquisition of Eat 24.
The deal, announced Tuesday, has Yelp! dishing out $134 million for the Web- and app-based online food ordering service. The two had been involved in a partnership since the summer of 2013 but that appears to have ended with the news of the purchase.
“As more food ordering transactions move online, further integrating Eat 24 will enhance our user experience with an easy-to-use product and service that allows our large consumer audience to transact directly with businesses,” Jeremy Stoppelman, Yelp co-founder and chief executive officer, said in a press release.
“Eat24 has developed a great solution and unique service that has already added great value to the Yelp Platform. With this acquisition, we gain more tools and expertise to help engage our users from discovery through transaction in a key vertical for Yelp.”
It’s been seven years since Eat 24 emerged online, reported Forbes. The service provides online ordering for approximately 20,000 restaurants in 1,500 American cities.
Details of the deal show the transaction is valued at the $134-million mark. That sum consists of 1.4 million shares of Yelp Class A common stock and $75 million cash, less certain transaction expenses and subject to customary working capital adjustments.
Both companies’ boards of directors have approved the deal which closed on Monday.
It’s a move that Eat24’s co-founder and chief executive officer said will enable better consumer experience.
“Yelp has an impressive ability to connect its users directly with businesses,” said Nadav Sharon. “This is an incredible opportunity to further connect with Yelp’s highly engaged users and to expand our reach to even more local businesses on its platform.”
W. Brice McVicar is a staff writer for SiteProNews.