SAN FRANCISCO, July 18, 2013 /PRNewswire/ -- Yelp Inc.
(NYSE: YELP), the company that connects consumers with great local
businesses, today announced it has agreed to acquire SeatMe,
Inc, a web and iPad-app based reservation solution for the
restaurant and nightlife categories. With SeatMe's solution, more
local restaurants and bars can provide an easy way for customers to
book online reservations, enhancing the consumer experience for
those who discover a great local business on Yelp.
(Logo:
http://photos.prnewswire.com/prnh/20050511/SFW134LOGO)
Based in San Francisco, SeatMe
was founded in 2011 to provide a technology solution that makes
managing reservations easy and affordable to a broad array of
restaurants and nightlife establishments. The SeatMe solution was
developed with a consumer-centric approach, including features like
texting guests that their table is ready and providing accurate
wait times.
"I am excited to welcome SeatMe's employees and customers to
Yelp," said Jeremy Stoppelman, Yelp
co-founder and chief executive officer. "SeatMe has developed a
truly compelling product for restaurants and bars of any size. With
approximately one million U.S. businesses listed on Yelp in the
restaurant and nightlife categories, we believe SeatMe will add
online reservation capabilities to a broader market while
complementing our existing partnerships. Additionally, SeatMe
provides us with yet another way to close the loop between local
businesses and consumers."
"We're excited to join the Yelp team and help connect consumers
with great local businesses," said Alexander Kvamme, SeatMe's co-founder and chief
executive officer. "We are committed to providing an innovative,
easy-to-use and affordable restaurant management system that can be
accessed anytime, anywhere. We target a large, underserved market
of restaurant and nightlife establishments, and we're excited about
the opportunity to significantly extend our market reach."
Acquisition Details
Under the terms of the acquisition agreement, Yelp will acquire
SeatMe for approximately $2.2
million in cash and up to approximately
263,000 shares of its Class A common stock, for a total
purchase price of approximately $12.7
million (subject to customary working capital
adjustments). The transaction, which has been approved by the
boards of directors of both companies, is subject to approval by
the SeatMe stockholders and the satisfaction of customary closing
conditions. The transaction is expected to close on or about
July 24, 2013 and the purchase price
recorded in Yelp's third quarter 2013 financial statements.
Yelp expects to record an increase in amortization of
intangibles and an increase in stock based compensation with the
additional equity granted to the employees of SeatMe. The SeatMe
team consists of approximately 15 employees who are expected to
join Yelp at its new headquarters in the fourth quarter of 2013. We
will update our third quarter and full year 2013 financial outlook
when we report our second quarter 2013 financial results on
Wednesday, July 31st.
About Yelp
Yelp Inc. (NYSE: YELP) (http://www.yelp.com) connects people
with great local businesses. Yelp was founded in San Francisco in July
2004. Since then, Yelp communities have taken root in major
metros across the US, Canada, UK,
Ireland, France, Germany, Austria, The
Netherlands, Spain,
Italy, Switzerland, Belgium, Australia, Sweden, Denmark, Norway, Finland, Singapore, Poland, Turkey, New
Zealand and the Czech
Republic. Yelp had a monthly average of 102 million unique
visitors in Q1 2013*. By the end of the same quarter, Yelpers had
written approximately 39 million rich, local reviews, making Yelp
the leading local guide for real word-of-mouth on everything from
boutiques and mechanics to restaurants and dentists. Yelp's mobile
applications were used on approximately 10 million unique mobile
devices on a monthly average basis during Q1 2013.
* Source: Google Analytics
Forward-Looking Statements
This press release contains forward-looking statements relating
to, among other things, the anticipated consummation of Yelp's
acquisition of SeatMe and the timing and benefits thereof, the
timing and impact of the acquisition of SeatMe on Yelp's financial
statements, Yelp's strategy, plans, objectives, expectations
(financial or otherwise) and intentions with respect to SeatMe,
including with respect to the hiring and integration of employees
of SeatMe, the future performance of Yelp and its consolidated
subsidiaries, the timing of Yelp's announcement of financial
results and outlook and other statements that are not historical
facts. These forward-looking statements are based on Yelp's
current expectations, forecasts and assumptions, and inherently
involve significant risks and uncertainties. Actual results and
timing of events could differ materially from those predicted or
implied in such forward-looking statements as a result of these
risks and uncertainties, which include, without limitation, risks
related to Yelp's ability to complete the transaction on the
proposed terms and schedule; other risks associated with the
acquisitions, such as the risk that the businesses will not be
integrated successfully or that such integration may be more
difficult, time-consuming or costly than expected; risks related to
future opportunities and plans for the combined company, including
the risk that the terms of Yelp's agreement with OpenTable, Inc.
could restrict its ability to fully integrate SeatMe in the manner
or in the timeframe Yelp's management might otherwise believe to be
in Yelp's best interests or that SeatMe's customers will continue
to use the service following the acquisition or that Yelp will be
able to leverage its large distribution network to increase the
customers using the service; risks related to the potential
disruption of both businesses in connection with the transaction;
and the competitive and regulatory environment while Yelp continues
to expand geographically and introduce new products and as new laws
and regulations related to Internet companies come into effect. The
forward-looking statements in this release do not include the
potential impact of any acquisitions or divestitures that may be
announced and/or completed after the date hereof.
More information about factors that could affect Yelp's
operating results is included under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in Yelp's most recent Quarterly Report on
Form 10-Q at http://www.yelp-ir.com or the SEC's website at
www.sec.gov. Undue reliance should not be placed on the
forward-looking statements in this release, which are based on
information available to Yelp on the date hereof. Yelp assumes no
obligation to update such statements.
Media Contact Information
Yelp Press Office
Vince Sollitto
(415) 230-6506
press@yelp.com
Investor Relations Contact Information
The Blueshirt Group
Stacie Bosinoff, Nicole Gunderson
(415) 217-7722
yelp@blueshirtgroup.com
SOURCE Yelp Inc.