Seamless and GrubHub are merging to type an enormous meals supply service
Seamless and GrubHub, two of the most important meals supply providers within the US, have simply introduced they will be merging right into a mixed firm, with the identify of the brand new operation to be determined at a later date. (SeamHub? Grubless?) In contrast to some different transactions we cowl round right here, this does appear to be a merger within the truest sense of the phrase, with GrubHub founder Matt Maloney stepping as much as the position of chief government officer and Seamless CEO Jonathan Zabusky staying on as president. Although we do not but know what the brand new service will probably be referred to as, the businesses are already saying it’ll serve 500-plus US cities, with greater than 20,000 eating places taking orders. Additionally, as hinted in that press launch under, the merger will give the brand new mega-firm extra monetary flexibility on the subject of additional progress alternatives. Subsequent up: Supply.com?
Seamless and GrubHub Announce Merger Mixed Networks, Providers and Merchandise Will Drive Further Restaurant and Diner Worth Enhanced Monetary Power Will Permit Group to Higher Scale in Quickly Rising Meals-Ordering Business
CHICAGO and NEW YORK, Might 20, 2013 /PRNewswire/ — Seamless North America LLC and GrubHub Inc. at present introduced the signing of a definitive settlement to merge two of the nation’s premier providers for ordering takeout. The merger will create a mixed firm nicely positioned to drive extra orders to eating places, ship a greater expertise for hungry diners and improve providers to company shoppers.
The mixed group will allow diners and corporations in additional than 500 cities throughout the U.S. to order from greater than 20,000 native takeout eating places. In 2012, the web and cellular platforms of the 2 organizations despatched roughly $875 million in gross meals gross sales to native takeout eating places, leading to mixed income properly in extra of $one hundred million.
“We’re excited to mix the strengths of those two dynamic organizations in an business that’s quickly gaining traction. We consider the merger will improve the merchandise we’re capable of supply each our diners and eating places,” stated Matt Maloney, GrubHub co-founder and CEO. “GrubHub and Seamless share a standard aim to generate extra enterprise for native takeout eating places whereas offering the absolute best service to diners. By combining our complementary restaurant and diner networks, we’re properly positioned for continued progress in an enormous market.”
“By bringing collectively a number of the business’s most celebrated merchandise, together with Seamless’s award-profitable iPad app and GrubHub’s revolutionary Monitor Your Grub, we will drive extra worth to all firm stakeholders,” stated Jonathan Zabusky, CEO of Seamless. “Each corporations additionally share a robust dedication to offer world-class service to eating places, diners and company shoppers. This merger is a chance to glean the perfect from every platform and enhance upon what we convey to all of our companions.”
Key strategic advantages of the merger embrace: Broader community and product choices. The expansive community and diversified services of the mixed group will strengthen the corporate’s capacity to serve eating places and diners throughout the U.S. and U.Okay. Accelerated innovation. The anticipated pooling of the mixed group’s analysis and know-how will assist to streamline product improvement and higher handle the evolving wants of this dynamic business.
Enhanced monetary flexibility and power. The merger will permit the corporate to pursue progress alternatives whereas persevering with to spend money on its present enterprise.
Matt Maloney will function chief government officer of the brand new group, and Jonathan Zabusky will function president. GrubHub and Seamless shareholders will each have vital illustration on the mixed firm’s Board of Administrators. Brian McAndrews, an unbiased director on the Seamless board previous to this transaction, will function chairman of the brand new, mixed board. The merger is topic to regulatory approval.
The mixed firm’s administration staff is predicted to attract upon the skilled group of leaders from each corporations. As nicely, the mixed group’s identify and advertising manufacturers are anticipated to be decided following regulatory approval.
Latham & Watkins LLP acted as authorized counsel to Seamless. Citi served as monetary advisor and Goodwin Procter acted as authorized counsel to GrubHub.
About GrubHub GrubHub is a number one on-line and cellular meals-ordering service that exhibits diners native eating places out there for supply or decide up. Obtainable in additional than 500 cities throughout the nation, GrubHub options greater than 20,000 on-line ordering eating places and, because the mother or father firm of Allmenus, lists roughly 250,000 restaurant menus. Diners who order via GrubHub’s free web site or cellular apps pays with money, credit score or PayPal&commerce;, and each order is supported by GrubHub’s 24/7 customer support. Based in 2004, GrubHub is a privately held firm headquartered in Chicago.
About Seamless Seamless is a number one cellular and on-line service for ordering supply and takeout meals from greater than 12,000 eating places within the U.S. and UK. Seamless serves diners and most of the world’s largest corporations throughout cities together with New York, Los Angeles, Washington DC, Boston, Chicago, San Francisco, Philadelphia, Houston, Austin, Seattle, Portland, Miami, London and different main U.S. cities. The corporate provides cellular purposes for iPad®, iPhone®, Android&commerce;, and BlackBerry® and owns MenuPages®, a complete cellular and net supplier of up-to-date menu content material.