Olo Stock Rips On Reaching $2B Deal With Thoma Bravo To Go Private

Private equity firm Thoma Bravo has agreed to buy restaurant technology firm Olo (OLO) for $2 billion in cash, the company announced on Thursday.

Olo shares jumped over 13% in early trading. Retail sentiment on Stockwits around the Olo stock was ‘extremely bullish’ on Thursday, compared to ‘neutral’ over the past week.

The company’s shareholders will receive $10.25 per share in cash, the restaurant tech firm said. The purchase price represents a premium of 65% over Olo's share price of $6.20 as of April 3, the last trading day before media reports regarding a potential transaction surfaced.

Private equity firms are investing heavily in tech services companies because of their lucrative combination of steady cash flows, high growth potential, and operational scalability.

These businesses benefit from recurring revenue models and the growing demand for digital transformation services, such as cloud, AI, and analytics.

Olo was founded in 2005 and provides restaurants with digital ordering, payment, and guest engagement solutions that help brands increase orders, streamline operations, and enhance the guest experience. 

The company collaborates with over 750 restaurant brands worldwide and maintains a network of more than 400 integration partners. Upon completion of the transaction, the company will become privately held.

The transaction is expected to close by the end of calendar year 2025, Olo said. It added that the company will continue to operate under the Olo name and brand.

Goldman Sachs is serving as the exclusive financial advisor and Goodwin Procter LLP is serving as legal counsel to Olo, the restaurant tech firm said.

Kirkland & Ellis LLP is serving as legal counsel to Thoma Bravo, it added.

In April, the private equity firm also acquired Boeing’s (BA) Digital Aviation Solutions business, which includes navigation unit Jeppesen, for $10.6 billion, expanding its footprint in enterprise software tied to logistics and aviation.

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