by Laurie Sullivan @lauriesullivan, March 1, 2017

The marketplace search engine Yelp announced Wednesday that it has acquired Nowait in an all-cash deal. Nowait is a mobile platform and seating tool that allows restaurants to manage their wait lists. Users can check nearby restaurants’ wait time and virtually get in line.

The two companies formed a partnership in August 2016, when Yelp invested $8 million, taking a partial stake in the company, and integrating the technology into its mobile app and service.

Jeremy Stoppelman, Yelp co-founder and CEO, said in a statement that the technology has become an important feature for Yelp users. “With this acquisition, we’ll make even bigger strides in the restaurant industry by allowing Yelp users to more quickly move from search and discovery to transacting at a local business,” he explains.

Mark Mahaney, analyst at equity research firm RBC Capital Research, views the acquisition as an extension of a partnership. “We view this as part of Yelp’s overall move into creating more transactions opportunities on their platform, creating value for consumers and small businesses,” he wrote.

Nowait is already running live at roughly 4,000 restaurants across the U.S. and Canada. The transaction was approved by the boards of both companies and closed on Feb. 28, 2017, with the purchase price to be reflected in Yelp’s Q1 financial statements.

Nowait’s technology aims to replace paper lists or handheld buzzers and allows restaurant patrons to add their name to the wait list without having to wait at the restaurant and waste time. A press release issued by Yelp explains that the technology help “to drive more business for busy restaurants while meeting the needs of time strapped diners.”

MediaPost.com: Search Marketing Daily

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