Yelp Inc. announced it has acquired Eat24, a leading web and app-based online food ordering service. With this acquisition, Yelp will drive daily engagement in the key foodservice vertical and plans to expand Eat24's offering to the one million U.S. restaurants listed on its platform.
Based in San Bruno, California, Eat24 was founded in 2008 to expand online food ordering while providing an improved customer experience. Eat24 provides approximately 20,000 restaurants in over 1,500 cities nationwide with the ability to offer online delivery and takeout services. Its intuitive site and app design and unrelenting focus on the consumer experience, including 24/7 live chat, email and phone support, make ordering easy.
"As more food ordering transactions move online, further integrating Eat24 will enhance our user experience with an easy-to-use product and service that allows our large consumer audience to transact directly with businesses," said Jeremy Stoppelman, Yelp co-founder and chief executive officer. "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."
"We're excited to join the Yelp team to deliver an even better consumer experience inside this top destination for finding local businesses," said Nadav Sharon, Eat24's co-founder and chief executive officer. "Yelp has an impressive ability to connect its users directly with businesses. 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."
The transaction is valued at approximately $134 million, consisting of approximately 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. The transaction, which was approved by the boards of directors of both companies, closed on February 9, 2015 and the purchase price will be recorded in Yelp's first quarter 2015 financial statements.