GrubHub stock got a boost on Tuesday after announcing plans to acquire Tapingo.
Tapingo is a college food ordering service operating in the U.S. It currently operates its business on 150 campuses across the country. The acquisition of this company is good news for GrubHub stock because it will give it a stronger foothold on college campuses.
GrubHub (NYSE:GRUB) is planning to purchase Tapingo for $150 million. It also notes that it is planning to talk about how the deal will affect its financials for the full year of 2018 in its earnings call for the third quarter of the year. It has yet to announce a date for its third-quarter earnings report.
“We are excited to add Tapingo, a company that shares our vision of bringing greater convenience to diners and improving the restaurant ordering and pickup experience through technology,” Matt Maloney, founder and CEO of Grubhub, said in a statement. “We value the college student population, many of whom we hope become life-long Grubhub diners with their first order.”
Kirkland & Ellis LLP and Fischer Behar Chen Well Orion & Co are the legal advisors to GrubHub for this acquisition. Tapingo’s legal advice comes from Herzog, Fox & Neeman and Silicon Legal Strategy. It is also getting financial advice concerning the deal from JMP Securities LLC.
So long as everything goes right, GrubHub and Tapingo are expecting to complete the acquisition deal in the fourth quarter of 2018.
GRUB stock was up 2% as of noon Tuesday and is up 89% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.
