Seamless North America LLC and GrubHub Inc. announced the signing of a definitive agreement to merge their services for ordering takeout. The merger aims to drive more orders to restaurants, deliver a better experience for hungry diners and enhance services to corporate clients, according to a news release.
The combined organization will enable diners and companies in more than 500 cities across the U.S. to order from more than 20,000 local takeout restaurants. In 2012, the online and mobile platforms of the two organizations sent approximately $875 million in gross food sales to local takeout restaurants, resulting in combined revenue well in excess of $100 million.
"We are excited to combine the strengths of these two dynamic organizations in an industry that is rapidly gaining traction. We believe the merger will enhance the products we are able to offer both our diners and restaurants," said Matt Maloney, GrubHub co-founder and CEO. "GrubHub and Seamless share a common goal to generate more business for local takeout restaurants while providing the best possible service to diners. By combining our complementary restaurant and diner networks, we are well positioned for continued growth in a massive market."
"By bringing together some of the industry's most celebrated products, including Seamless's award-winning iPad app and GrubHub's innovative Track Your Grub, we will be able to drive more value to all company stakeholders," added Jonathan Zabusky, CEO of Seamless. "Both companies also share a strong commitment to provide world-class service to restaurants, diners and corporate clients. This merger is an opportunity to glean the best from each platform and improve upon what we bring to all of our partners."
Maloney will serve as chief executive officer of the new organization, and Zabusky will serve as president. GrubHub and Seamless shareholders will both have significant representation on the combined company's board of directors. Brian McAndrews, an independent director on the Seamless board prior to this transaction, will serve as chairman of the new, combined board. The merger is subject to regulatory approval.
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