US-based food-ordering marketplace Grubhub has completed the acquisition of LevelUp in a cash deal valued at $390m.
LevelUp operates as a mobile ordering and mobile payments platform and services national and regional restaurant brands in the US.
The takeout food-ordering marketplace believes the acquisition of LevelUp will enable its partner restaurants to drive online delivery and pickup orders by powering the full ordering experience from demand generation to fulfilment.
LevelUp will fast-track Grubhub’s existing point-of-sale integration capabilities and offer restaurant partners with strong customer relationship management and analytical tools to boost sales.
Grubhub expects the deal to have a revenue contribution of approximately $2m to third quarter results and a negative impact EBITDA of less than $1m.
In a separate development, Grubhub has reached an agreement to buy certain assets of 11 franchisee-owned OrderUp food delivery markets across California, Colorado, Indiana, Missouri, Oregon, Oklahoma, and Virginia.
The acquisition is predicted to be completed during the fourth quarter of 2018, pending standard closing conditions. The company already purchased certain assets of 27 other OrderUp markets last year.
Grubhub works with more than 85,000 restaurant partners in more than 1,600 US cities, as well as London. Its portfolio of brands comprises Seamless, Eat24, AllMenus and MenuPages.