SAN FRANCISCO: US based online company Yelp Inc has acquired Eat24, a leading web and app-based online food ordering service for $134 million.
The online firm connects consumers with local businesses.
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.
'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.
The transaction has been approved by the boards of directors of both companies.
With this acquisition, Yelp will drive daily engagement in the key restaurant vertical and plans to expand Eat24's offering to the one million US restaurants listed on its platform.
'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,'said Nadav Sharon, Eat24's co-founder and chief executive officer.
For the full year 2015, Yelp is increasing its revenue outlook and expects net revenue to be in the range of $574 million to $579 million. Yelp is also increasing its Adjusted EBITDA outlook, which is now expected to be in the range of $102 million to $105 million for the full year 2015.
California based 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 in US with the ability to offer online delivery and takeout services.