Yelp Inc. acquired food-ordering service Eat24.com LLC and raised its revenue and profit outlook for this year, sending the shares higher.

The cash-and-stock deal is valued at $134 million, San Francisco-based Yelp said in a statement Tuesday. Yelp raised its 2015 revenue outlook to $574 million to $579 million and said adjusted earnings before interest, taxes, depreciation and amortization will be $102 million to $105 million. The previous forecast was for sales of $538 million to $543 million and adjusted Ebitda of $100 million to $103 million.

Yelp shares, which slumped last week after the company reported earnings and its first-ever sequential decline in monthly active users, rose as much as 6.1 percent today to $44.75. That was the biggest intraday gain in three months for the stock, which had fallen 23 percent this year through Monday.

Eat24 lets people order food from about 20,000 restaurants in more than 1,500 U.S. cities via the Web and mobile applications. Yelp, which provides local user reviews of everything from restaurants to hairdressers, is expanding even as it faces more competition from Google Inc. and other rivals in local Web advertising.

“As more food ordering transactions move online, further integrating Eat24 will enhance our user experience with an easy- to-use product and service that allows our large consumer audience to transact directly with businesses,” Chief Executive Officer Jeremy Stoppelman said in the statement.

Yelp paid $75 million in cash and 1.4 million shares for San Bruno, California-based Eat24. The deal closed Feb. 9, the company said. Yelp also raised its forecast for first-quarter revenue to $118.5 million to $120.5 million, from $114 million to $116 million, and kept its adjusted Ebitda outlook at $19 million to $21 million.

Past M&A activity has been seen among online food delivery companies. One of the most notable deals was the merger of Seamless North America LLC and GrubHub Inc., both online food delivery services.

The deal, announced in May 2013, created a combined company that can serve users in more than 500 cities and about 20,000 restaurants. Delivery.com LLC followed up a month later when it agreed to buy Brinkmat LLC, a provider of free laundry pick-up and delivery to New Yorkers. In July 2013, Yelp took over SeatMe, a San Francisco service that allows users to make restaurant reservations online.

For more coverage, see Going Local Underlies Angie's List Deal

Subscribe Now

Complete access to real-time information and analysis of news and trends in the industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.