Waitr announced this morning it has secured an agreement to acquire Minnesota-based Bite Squad for roughly $321.3 million, expanding the company’s reach to more than 500 cities across 22 states.
Bite Squad’s operations are consistent with Waitr’s business model. Founded in 2012, the Minneapolis-based company connects more than 11,000 active restaurants with approximately 6,300 drivers and approximately 889,000 diners. Bite Squad will remain a standalone business, maintaining its brand, operations, technology and employees for the foreseeable future, a company spokeswoman says.
Chris Meaux, founder and CEO of Waitr, says the company has followed Bite Squad’s growth for many years and believes its business model, growth profile and mission are similar to Waitr’s.
“We believe that a small fraction of the U.S. restaurant industry’s sales are from off-premise online transactions and this is evolving rapidly,” Meaux says. “This acquisition will help us drive additional growth and provide a step function increase in scale throughout the U.S. in order to better serve that developing market.”
The purchase price of Bite Squad consists of approximately $202.1 million in cash and 10.6 million shares of Waitr’s common stock, for an aggregate amount of $321.3 million.
Waitr officially became a publicly traded company on the NASDAQ exchange last month under the ticker symbol WTRH following the completion of a $308 million purchase of the company by Landcadia Holdings, owned by Houston billionaire Tilman Fertitta.