Yelp Inc. closed the sale of its online food ordering business Eat24 to GrubHub Inc.
The company said Oct. 10 that it received about $251.7 million in cash at closing, which remains subject to customary post-closing adjustments, and an additional $28.8 million in cash will be held in escrow for an 18-month period after closing to secure GrubHub's rights of indemnification.
Yelp will update its full-year 2017 financial outlook, reflecting the expected financial impact of the sale of Eat24 and GrubHub partnership, upon reporting the third-quarter results.
Yelp sold Eat24 as part of a strategic partnership with GrubHub to integrate online ordering from all GrubHub restaurants onto the Yelp local goods and services platform. The partnership with GrubHub is expected to increase the number of order-enabled restaurants on Yelp to about 75,000 when fully implemented, Yelp said.