OpenTable (OPEN) Acquires JustChalo; Sees Incremental non-GAAP Expenses
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OpenTable, Inc. (Nasdaq: OPEN) announced that it has acquired JustChalo Inc., a mobile technology company, pursuant to a stock and cash merger, with a transaction value of approximately $11 million based on the closing price of OpenTable stock on June 7, 2013.
"We're excited to welcome the talented JustChalo team to our mobile development group," said Joseph Essas, Chief Technology Officer of OpenTable. "Mobile is increasingly important to our business and the JustChalo team's expertise will help accelerate our development efforts in this area. We're looking forward to integrating JustChalo's engineers into our team and continuing to enhance the mobile experience for diners and our restaurant customers."
OpenTable has experienced a growing number of diners who are choosing to book via mobile devices. In the first quarter of 2013, reservations booked on mobile devices accounted for 36 percent of the 34 million diners OpenTable seated in North America. Since the introduction of its mobile solutions in November 2008, OpenTable has seated more than 60 million diners through reservations booked on mobile devices.
Solely as a result of the acquisition of JustChalo, OpenTable expects to incur incremental non-GAAP operating expenses of $0.9 million in its North America operations through the remainder of 2013 when compared with the guidance provided on May 2, 2013. These incremental non-GAAP operating expenses will reduce full year 2013 non-GAAP EPS by $0.02.The shares issued as consideration for this transaction are offset by shares repurchased during the quarter pursuant to a 10b5-1 trading plan under the Company's previously announced stock repurchase program.
"We're excited to welcome the talented JustChalo team to our mobile development group," said Joseph Essas, Chief Technology Officer of OpenTable. "Mobile is increasingly important to our business and the JustChalo team's expertise will help accelerate our development efforts in this area. We're looking forward to integrating JustChalo's engineers into our team and continuing to enhance the mobile experience for diners and our restaurant customers."
OpenTable has experienced a growing number of diners who are choosing to book via mobile devices. In the first quarter of 2013, reservations booked on mobile devices accounted for 36 percent of the 34 million diners OpenTable seated in North America. Since the introduction of its mobile solutions in November 2008, OpenTable has seated more than 60 million diners through reservations booked on mobile devices.
Solely as a result of the acquisition of JustChalo, OpenTable expects to incur incremental non-GAAP operating expenses of $0.9 million in its North America operations through the remainder of 2013 when compared with the guidance provided on May 2, 2013. These incremental non-GAAP operating expenses will reduce full year 2013 non-GAAP EPS by $0.02.The shares issued as consideration for this transaction are offset by shares repurchased during the quarter pursuant to a 10b5-1 trading plan under the Company's previously announced stock repurchase program.
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