Yelp will pay approximately $2.2 million in cash for SeatMe and up to approximately 263,000 shares of its Class A common stock, for a total purchase price of approximately $12.7 million by July 24th.
The deal will see Yelp connect more restaurants and bars to customers through online bookings.
SeatMe was founded in San Fransisco in 2011 and makes managing reservations easy and affordable to restaurants and nightlife establishments through technology solutions that are consumer-centric with features such as texting guests when their table is ready.
According to Jeremy Stoppelman, Yelp co-founder and chief executive officer,”I am excited to welcome SeatMe’s employees and customers to Yelp. SeatMe has developed a truly compelling product for restaurants and bars of any size.”
Yelp has has about one million U.S. businesses listed under its restaurant and nightlife categories. SeatMe will add online reservation capabilities to its existing partnerships and provide Yelp with another way to close the loop between local businesses and consumers.
Also excited about the deal, Alexander Kvamme, SeatMe’s co-founder and chief executive officer said SeatMe will help connect consumers with great local businesses.
“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,” Kvamme added.
SeatMe’s 15 person team will join Yelp at its new headquarters in the fourth quarter of 2013.