Grubhub has acquired a Boston-based mobile payment platform for $390 million in an all-cash deal.
Grubhub announced during its second quarter earnings report that it has acquired LevelUp, a company founded in 2008 that helps restaurants accept mobile orders and provide mobile loyalty programs. Grubhub said the acquisition will simplify its integrations with national restaurant brands like KFC, Taco Bell and Bareburger, giving restaurants better CRM and analytics tools to help attract diners to their platform.
LevelUp had raised over $100 million in funding from investors like JPMorgan Chase and Alphabet's GV.
The acquisition, combined with strong second quarter earnings, sent Grubhub's stock skyrocketing Wednesday morning. Grubhub's stock climbed more than 15 percent as the company beat Wall Street's estimates on both revenue and earnings. Grubhub's revenues totaled $240 million for the quarter, a 51% year-over-year increase from $159 million in the second quarter of 2017. The company posted profits of $30.1 million in Q2, a 104% year-over-year increase from the same quarter last year.
Grubhub has been on a bit of a spending spree lately. Grubhub spent $288 million to acquire Yelp's Eat24 business last year. It acquired food delivery service Foodler in June last year for $51 million. And the Chicago food delivery giant also bought OrderUp in 2017.
"LevelUp’s leading restaurant-facing technology and the team they have built in Boston will help Grubhub provide the most comprehensive solution for restaurants, powering everything from online demand generation to fulfillment for restaurants," Grubhub CEO Matt Maloney said in Wednesday's earnings release.
