GrubHub surges after earnings report and LevelUp acquisition 

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Actors dressed in Grubhub Inc. costumes interact with traders on the floor of the New York Stock Exchange (NYSE) in New York.

Shares of GrubHub soared more than 24 percent on Wednesday, following a strong second quarter earnings report and the company’s announcement it would acquire mobile ordering and mobile payments platform LevelUp.

The gains pushed GrubHub’s shares to an all-time high of $134.33 per share during regular trading on Tuesday.

The online food ordering company beat on earnings and revenue for the fourth consecutive quarter, according to FactSet. GrubHub surpassed $1 billion in quarterly gross food sales, up 39 percent year-over-year, and tallied 15.6 million active users in the quarter — a 70 percent increase from a year ago.

Concurrently with its earnings report, GrubHub announced it would acquire LevelUp for $390 million cash.

CEO Matt Maloney said the company hopes LevelUp’s restaurant-facing technology will help GrubHub “provide the most comprehensive solution for restaurants, powering everything from online demand generation to fulfillment for restaurants.”

Whereas previous acquisitions, like Eat24 in Oct. 2017, were intended to help GrubHub scale, Maloney told TechCrunch, LevelUp is about strategic positioning and technological integration. GrubHub expects LevelUp, which offers a platform for managing ordering, payments and loyalty, to help accelerate the company’s integration with national restaurant brands, including KFC, Taco Bell, Bareburger, and Roti. GrubHub said LevelUp will also provide restaurants with customer relations management and analytics tools to help engage with and attract potential diners.

The potential acquisition is still subject to standard closing conditions, including a U.S. antitrust waiting period. The transaction is expected to be funded through cash on hand and existing credit.