On Friday, news broke that Seamless and GrubHub, online food delivery competitors, might join forces.
Those rumors are true and the merger was just announced by the companies.
According to Seamless' CEO, Jonathan Zabusky, no new name for the organization has been decided yet. No cash was exchanged by either company, so this is strictly a merger, not a buyout. Also, neither company plans to have any layoffs as a result of the merger.
Zabusky says the talks have been ongoing for a few months.
"We were w ell aware of GrubHub for a long time and vice versa. I t wasn't like some single event where we looked at each other across the room and knew it had to be," Zabusky tells Business Insider.
Matt Maloney, GrubHub's CEO, will serve as chief executive officer of the new company. Jonathan Zabusky, Seamless' CEO, will be its president.
Here are more details from the press release: "GrubHub and Seamless shareholders will both have significant representation on the combined company’s Board of Directors. Brian McAndrews, an independent director on the Seamless board prior to this transaction, will serve as chairman of the new, combined board.
Bloomberg first reported the merger in the following tweet:
BREAKING: Seamless and GrubHub announce merger
Seamless and GrubHub have been rivals for some time. But Zabusky says the two companies have a common enemy, paper menus, and combined they can take both their organizations to the next level.
Seamless works with tens of thousands of local restaurants. It's been around since 1999 when it launched with corporate partners in New York.
The site has gone through many changes over the past 12 years. It was acquired in the mid-2000s but was spun out into its own entity in 2011. Now, Seamless is like a startup all over again. It re-branded itself from Seamless Web, it has been acquiring companies like MenuPages, and it is hiring like crazy. It's trending toward processing $1 billion in annual food delivery payments. It reportedly generated $85 million last year.
GrubHub was founded in 2004 and it has raised more than $84 million to date. Seamless has owned the New York City restaurant market, whereas GrubHub has made waves in the Midwest.
Combined, the two companies reach 500 cities and work with more than 20,000 restaurants.
"We are excited to combine the strengths of these two dynamic organizations in an industry that is rapidly gaining traction," Maloney said in the release. "We believe the merger will enhance the products we are able to offer both our diners and restaurants,”
Below is an interview with Seamless' CEO, Jonathan Zabusky from 2011, about what his company does, and where he plans to take it.
More From Business Insider