TripAdvisor Inc. (TRIP - Free Report) announced that it has acquired SinglePlatform from Endurance International Group.
Reportedly, the deal has been valued at $51 million.
Founded in 2010, SinglePlatform is a listings management company. It is an online platform that allows restaurants to post and monetize their menus. It also works with restaurants to manage other information such like their business name, opening hours, and contact information on main search and sites like Google and Facebook (FB).
Courtesy of the deal, restaurants can subscribe to the service and update their menus across the web from TripAdvisor’s management center. This will likely help the company to deepen relationships with restaurant owners and in turn diversify revenues to better compete with Alphabet’s (GOOGL) Google.
TripAdvisor, Inc. Price and Consensus
How SinglePlatform Fits In?
TripAdvisor has been making constant efforts to expand restaurant services and distribution capabilities.
The travel portal has approximately 5 million restaurants listed on its website. Via this online travel booking website, restaurants can respond to reviews and update their listing information at no cost.
The latest deal will enable TripAdvisor to further expand its digital marketing suite for restaurants by offering more visibility on the menu and providing other listings management services to restaurant owners. This will likely help attract more diners, thereby increasing traffic for TripAdvisor.
Therefore, we note that SinglePlatform’s acquisition by TripAdvisor is a smart move.
TripAdvisor’s acquisition of SinglePlatform is in line with its goal of diversifying business. For hotel reviews, TripAdvisor has been witnessing increased competition from Google, as it has beefed up travel capabilities and reviews. Infact, the entire travel sector has been witnessing the same pressure and making efforts to diversify businesses.
Therefore, this acquisition is another effort by TripAdvisor to deepen relationships with restaurants and generate more revenues.
Zacks Rank & Key Picks
At present, TripAdvisor has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) , Itron, Inc. (ITRI - Free Report) and AMETEK, Inc. (AME - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for MACOM Technology, Itron and AMETEK is currently projected at 15%, 25% and 10.9%, respectively.
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