Seamless North America LLC and GrubHub Inc., both online food delivery services, are merging.
The combined company will be able to serve users in more than 500 cities across the U.S., offering delivery from about 20,000 restaurants.
Both companies allow users to order food take out or delivery from mobile phone applications or online. Terms of the deal were not disclosed, but the combined company is expected to have more than $100 million in combined revenue.
GrubHub, based in Chicago, was founded in 2004 by Matt Maloney and Mike Evans (pictured) and has received $84.1 million in venture capital backing from Origin Ventures, Leo Capital Holdings, Amicus Capital, Benchmark, DAG Ventures, Lightspeed Venture Partners, Greenspring Associates and Mesirow Financial. Seamless, headquartered in New York and started in 1999, has received $51 million in venture funding from Spectrum Equity and Artists & Instigators.
Latham & Watkins LLP was Seamless’ legal counsel for the transaction. Citi acted as GrubHub’s financial adviser, while Goodwin Procter was legal counsel.
The transaction is the latest in food technology M&A. In January, OpenTable Inc. (Nasdaq: OPEN) agreed to buy Foodspotting, a mobile application used to find and share dishes at restaurants, for $10 million. In September 2011, Google Inc. (Nasdaq: GOOG) bought Zagat for $200 million, and in October 2011, Seamless agreed to buy MenuPages. In September 2010, OpenTable bought Toptable.com for $55 million.