Greetings from Manhattan, where I'm in a hotel situated between the Port Authority and a 99-cent per slice pizza joint (startup life is super glamorous). Great seeing some of you in Brooklyn last night at the 1776 event. Here we go...
Top of the Morning
GrubHub (NYSE: GRUB) has agreed to acquire food-ordering service Eat24 from Yelp (NYSE: YELP) for $287.5 million, adding 15,000 restaurants to its 55,000 restaurant base. GrubHub also signed a 5-year deal that enables it to receive food orders through Yelp listings, and also signed a strategic partnership with Groupon (Nasdaq: GRPN).
- Why it's the BFD: For starters, this is a strong return for Yelp, which paid just $134 million for Eat24 in early 2015. That's probably why its stock soared on the news and GrubHub's slumped. But, in the long-run, the deal should give GrubHub some added buffer against burgeoning rivals Amazon and Uber.
- Bottom line: "Grubhub's delivery dominance in the U.S. is rivaled only by Domino's, the ubiquitous pizza chain. As of last summer, Grubhub commanded a 23% slice of the digital ordering and delivery market compared to Domino's 24%, according to research from Morgan Stanley." – Alison Griswold, Quartz
Venture Capital Deals
Private Equity Deals
• Elio Motors, a Phoenix-based developer of three-wheeled vehicles, has filed for a $100 million IPO. It currently is traded on the OTC, but plans to relist on the Nasdaq under ticker symbol ELIO, with Drexel Alexander serving as sole underwriter. http://bit.ly/2vocmtG
• Southfield Capital, a Greenwich, Conn.-based lower middle-market private equity firm, has closed its second fund with around $200 million in capital commitments. www.southfieldcapital.com
• Stephen Bolze has joined The Blackstone Group's new infrastructure unit as a senior managing director and head of portfolio operations and asset management. He previously was president and CEO of General Electric's power business. http://on.wsj.com/2wp0TH6
• Cesar Gueikian has joined Monroe Capital as a managing director and co-portfolio manager for a new special situations credit strategy. He previously was founder of Melody Capital Partners. www.monroecap.com
• Anne-Marie Peterson has joined Baird's investment banking group as a managing director of global debt advisory. She previously was with KeyBanc Capital Markets. www.rwbaird.com
• The Rhoatyn Group has promoted Roberto Chute to partner, leading Latin America private equity activities. He joined the firm's Buenos Aires office in 2006, before which was with BofA Equity Partners Latin America. www.rohatyngroup.com