Yelp (YELP) to Acquire Qype in ~$50M Cash, Stock Deal; Sees Q3 Results Exceeding Views

October 24, 2012 6:27 AM EDT
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Yelp (NYSE: YELP) announced it has acquired Qype, Europe's largest local reviews site. Qype was acquired to accelerate Yelp's international expansion, bringing more than two million reviews and 15 million unique visitors per month across 13 countries.

Under the terms of the acquisition agreement, Yelp acquired all of Qype's shares, for approximately €18.6 million and 970,000 shares of Yelp's Class A common stock, for a total purchase price of approximately $50 million USD. Qype is headquartered in Germany, with operations also in the United Kingdom. The acquisition will be recorded in Yelp's fourth quarter and 2012 year-end financial statements.

Yelp also provided preliminary financial results for the third quarter ended September 30, 2012. Revenue and Adjusted EBITDA for the third quarter 2012 exceeded Yelp's previous guidance provided on August 1, 2012. Revenue for the third quarter 2012 is expected to be approximately $36.4 million, net loss for the quarter 2012 is expected to be approximately $2.0 million, and Adjusted EBITDA is expected to be approximately $2.2 million. The Street sees revs of $35.8 million.

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