Thoma Bravo to buy Olo in deal valuing restaurant tech firm at $2 billion

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(Reuters) – Buyout firm Thoma Bravo has agreed to acquire Olo in an all-cash deal valuing the company at about $2 billion, the restaurant software provider said on Thursday, sending its shares up more than 13% in early trading.

Olo shareholders will receive $10.25 per share in cash under the terms of the deal, representing a 65% premium to the stock’s closing price on April 30, the last trading day prior to reports about a potential sale.

New York-based Olo will become a privately held company following the deal, which the company said is expected to boost its growth by strengthening its platform and offerings.

The company, founded in 2005, provides digital ordering, payments and customer engagement solutions for more than 750 restaurant brands across 88,000 global locations. Its customers include popular chains such as Denny’s, P.F. Chang’s, Nando’s and Cold Stone Creamery, according to its website.

Olo laid off about 9% of its workforce last year in a bid to stem its losses, following an 11% job cuts announcement in 2023. The company has since improved its profitability, reporting a net income of $1.81 million in the January-March quarter.

It had 617 employees in the U.S. as of December 2024.

The deal with Thoma Bravo, one of the largest software-focused investment firms with about $184 billion in assets under management, is expected to close by the end of 2025.

Olo is required to pay a termination fee of $73.7 million in cash if the deal falls through under certain circumstances. Goldman Sachs is serving as the exclusive financial adviser to Olo.

(Reporting by Deborah Sophia in Bengaluru; Editing by Shreya Biswas and Saumyadeb Chakrabarty)