Yelp said Tuesday that it had bought online food-ordering service Eat24, expanding its business beyond consumer reviews into one of the hottest sectors of the online economy.
Yelp Expands Into Online Food Ordering With Eat24 Purchase
Review site takes on GrubHub with $134 million acquisition.
The acquisition of Eat24 for $134 million puts Yelp in direct competition with established operators such as GrubHub.
Shares of Yelp rose as much as 7.5 percent to $45.30 in early trading on Tuesday.
Eat24 offers online delivery and takeout services to about 20,000 restaurants in over 1,500 cities across the United States.
Yelp said it paid $75 million in cash and about 1.4 million Class A shares for San Bruno, Calif.-based Eat24.
Yelp raised its current-quarter revenue forecast to a range of $118.5 million to $120.5 million from $114 million to $116 million.
The company also increased its full-year revenue forecast to between $574 million and $579 million from between $538 million and $543 million.
Analysts on average were expecting revenue of $115.7 million for the current quarter and $542.8 million for the full year, according to Thomson Reuters I/B/E/S.
Yelp, faced with maturing growth in the United States, has been stepping up efforts to expand in international markets, without much success.
(Reporting by Subrat Patnaik and Lehar Maan in Bengaluru; Editing by Savio D’Souza)
This article originally appeared on Recode.net.
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