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January 21, 2019

Waitr buys online food delivery service Bite Squad for $323m

On-demand food delivery platform Waitr has concluded the purchase of online food delivery service Bite Squad for a total consideration of approximately $323m.

On-demand food delivery platform Waitr has concluded the $323m purchase of Bite Squad.

This total consideration includes a combination of cash and Waitr common stock. The deal was announced last month.

Based in Minneapolis, Bite Squad currently has a network of more than 11,000 restaurants and 6,300 delivery staff to meet requirements of approximately 889,000 active diners.

The company reported 85% year-over-year gross food sales growth and 98% year-over-year revenue growth in Q3 2018.

Waitr founder and CEO Chris Meaux said: “We are thrilled to announce the completion of the Bite Squad acquisition. As a result of this combination, we now serve a total of over 86 markets in more than 500 cities and 22 states.

“We believe this transaction is a major growth step for us and positions us well to be a leading restaurant platform for online ordering and food delivery.”

“We believe this transaction is a major growth step for us and positions us well to be a leading restaurant platform for online ordering and food delivery across underserved markets throughout the United States.”

The deal is expected to strengthen Waitr’s scale and footprint in the US to more than 86 markets across 500 cities and 22 states.

It will also offer an advantage to develop the business and an opportunity to realise cost synergies.

Waitr also signed a debt commitment letter with Luxor Capital Group to secure senior secured first priority term loans of approximately $42.1m.

The restaurant platform used a part of the loan secured from Luxor Capital Group to finance the acquisition. It has plans to use the remaining amount for general corporate purposes.

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