Olo Faces Lawsuit Over Merger Agreement with Thoma Bravo

Olo Inc. has announced a merger agreement with Project Hospitality Parent, which will result in Olo becoming a wholly-owned subsidiary of Project Hospitality Parent. The merger, involving Thoma Bravo affiliates, has led to litigation from stockholders alleging misrepresentation in the merger's proxy statement. Despite Olo's belief that the claims are without merit, the company has decided to supplement disclosures to address the claims and avoid potential business delays.

Olo Inc. (NYSE: OLO) has announced a merger agreement with Project Hospitality Parent, LLC, which will result in Olo becoming a wholly-owned subsidiary of Project Hospitality Parent. This merger, involving Thoma Bravo affiliates, has led to litigation from stockholders alleging misrepresentation in the merger’s proxy statement. Despite the company’s belief that these claims are without merit, Olo has decided to supplement disclosures to address the claims and avoid potential business delays [1].

The most recent analyst rating on OLO stock is a Buy with a $11.50 price target. According to Spark, TipRanks’ AI Analyst, OLO is an Outperform. The overall stock score reflects strong revenue growth and strategic corporate events, such as the acquisition by Thoma Bravo. However, profitability challenges and valuation concerns weigh on the score. The technical analysis indicates a positive trend, while the earnings call provides a positive outlook despite some challenges [1].

Olo Inc. operates in the technology industry, focusing on providing digital ordering and delivery solutions for the hospitality sector. The company is known for its software products that streamline online ordering and delivery processes for restaurants and other food service providers. The average trading volume is 3,969,054 shares, and the current market cap is $1.74 billion [1].

Halper Sadeh LLC, an investor rights law firm, is investigating Olo Inc. for potential violations of the federal securities laws and/or breaches of fiduciary duties to shareholders relating to the sale to Thoma Bravo for $10.25 per share in cash. The firm may seek increased consideration for shareholders, additional disclosures, or other relief and benefits on behalf of shareholders [2].

Olo shareholders will receive $10.25 per share in cash, a 65% premium to Olo’s unaffected share price. The transaction is expected to help accelerate Olo’s growth and strengthen its platform and offerings for the over 750 restaurant brands it serves globally. Upon completion of the transaction, Olo will become a privately held company [3].

References:
[1] https://www.tipranks.com/news/company-announcements/olo-faces-litigation-over-recent-merger-agreement
[2] https://www.prnewswire.com/news-releases/shareholder-investigation-halper-sadeh-llc-investigates-task-mbc-olo-on-behalf-of-shareholders-302541031.html
[3] https://www.businesswire.com/news/home/20250703642060/en/Olo-Enters-into-Definitive-Agreement-to-be-Acquired-by-Thoma-Bravo