Dive Brief:
- Olo has entered into a definitive agreement to be acquired by Thoma Bravo, a software investment firm, in an all-cash transaction worth $2 billion in equity value, Olo said in a press release Wednesday.
- The transaction, which is expected to be completed by the end of the year, will make Olo a private company. The company will continue to operate its Olo name and brand.
- Olo went public in March 2021 with a $450 million initial public offering, later that year buying Wisely, a customer intelligence and engagement platform, for $187 million.
Dive Insight:
Despite having a successful IPO, the chain has struggled in recent quarters, laying off 9% of its corporate staff in September to position the company for balanced growth. That was in addition to an 11% cut to its staff in June 2023. Tech companies have struggled on the stock market in the past few years. Presto was delisted last year, and put its tablet business up for sale. Food delivery firm ASAP, formerly Waitr, went bust last year.
Olo did start the year on strong footing with revenue growing 21% during the first quarter, according to an earnings release. Gross profit improved while operating loss decreased to $2.4 million compared to a loss of $7.2 million in the year-ago quarter.
Olo’s transaction is expected to help the tech company accelerate its growth plan and strengthen its offerings for over 750 brands that it works with globally. It has over 80,000 locations and a network of over 400 integration partners, per the press release.
“By partnering with Thoma Bravo, we believe we can build on our success to date and accelerate our vision of helping our customers create a world where every restaurant guest feels like a regular,” Noah Glass, Olo’s founder and CEO, said in a statement.
Olo shareholders will get $10.25 per share in cash, representing a 65% premium over Olo’s unaffected share price of $6.20 as of April 30, 2025.
Olo represents a handful of hospitality-focused tech firms that have been acquired lately. DoorDash bought SevenRooms for $1.2 billion this year. The Access Group acquired Paytonix, while Serve Robotics bought avocado robotmaker Vebu late last year.
