US-based food-ordering marketplace Grubhub has agreed to acquire mobile food ordering and payments platform LevelUp for $390m.
The deal will assist Grubhub to accelerate technology integrations and offer comprehensive ordering and fulfilment solutions to its customers.
As part of the definitive agreement signed between the parties, LevelUp’s technology and team will simplify Grubhub’s integrations with restaurant brands across the US, offer more channels to attract and engage diners and assist in accelerating product development for restaurant-facing tools.
LevelUp founder and chief executive officer Seth Priebatsch said: “For the last seven years, the LevelUp team has worked to provide our restaurant partners with a complete solution to engage customers in this rapidly evolving digital landscape.
“By becoming a part of Grubhub, we take our biggest and most exciting step in achieving that mission. Together, we will provide restaurants with everything they need to grow profitably as more and more diners opt for the convenience, transparency and control of ordering online.”
The acquisition will allow Grubhub to help national and independent restaurants drive online delivery and pickup orders.
It also accelerates Grubhub’s existing point of sale integration capabilities and offers restaurants with analytical tools to increase volume from existing diners.
The transaction is subject to standard closing conditions such as the expiration of US antitrust waiting periods.
Additionally, Grubhub has reported revenues of $240m in the second quarter (Q2) ending 30 June 2018, a 51% year-over-year increase compared to revenues of $159m for the same period last year.
The food delivery platform also reported gross food sales of $1.2bn, a 39% year-over-year increase compared to last year’s $880m.
Net income was $30.1m or $0.33 per diluted share in Q2, a 104% year-over-year increase compared to $14.8m in Q2 2017.
The company also reported a non-GAAP adjusted EBITDA of $67.4m, a 61% year-over-year increase from $41.9m for the same period last year.