Yelp is offered a Eat24 food smoothness use to Grubhub for $287.5 million in cash, a association announced today.
Yelp shares are adult 19% in after hours trade on a news. Shares of Grubhub were adult 1.6%.
Yelp and Grubhub will enter into a “long-term vital partnership” as partial of a deal, in that Yelp will confederate online grouping from Grubhub restaurants into a platform.
The deal, that Yelp disclosed in a Q2 gain proclamation on Thursday, is theme to shutting conditions, including antitrust approval. Under a terms of a deal, Yelp is entitled to a $15 million stop price if a acquisiton does not tighten by Nov due to antitrust conditions.
Yelp, an online reviews site, acquired Eat24 in Feb 2015 for $134 million.
The understanding outlines Grubhub’s latest pierce to enhance a strech to new users opposite opposite platforms. Last month Grubhub announced a understanding to let Groupon’s users sequence food from Grubhub’s network of 55,000 partner restaurants. Grubhub also acquired certain resources of Groupon’s OrderUp food smoothness service.
Yelp’s designed sale of Eat24, along with a $200 million buyback module announced on Thursday, were cheered on Wall Street, re-invigorating Yelp’s stock, that finished Thursday’s unchanging event down 28% from a 52-week high.
In an online presentationp published on Yelp’s site with a Q2 results, a association pronounced a Grubhub partnership would “nearly double a online food grouping options” on Yelp.
In a 3 months finished Jun 30, Yelp’s net income grew 20% year-over-year to $208.9 million. The association warranted $7.6 million in net income, or 9 cents per share.
Yelp also announced a $200 million share buyback module on Thursday.
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