Arby's parent company is buying Sonic in a $2.3 billion deal

Sonic Sonic.Hollis Johnson/Business Insider

Arby's parent company, Inspire Brands, is acquiring burger chain Sonic for $2.3 billion.
Inspire Brand was founded in February 2018, following Arby's acquisition of Buffalo Wild Wings.
Sonic will continue to operate independently out of its Oklahoma City headquarters.

Arby's parent company, Inspire Brands, is acquiring burger chain Sonic.

On Tuesday, Inspire Brands announced that it is buying the burger brand for $2.3 billion, at $43.50 per share. The deal represents a premium of roughly 19% per share versus Sonic's closing stock price on Monday.

Sonic — known for its burgers, quirky menu items, and extensive beverage options — is the largest drive-in chain in the US, with more than 3,600 locations. The chain will continue to operate as an independent brand out of the chain's Oklahoma City headquarters.

Inspire Brands was formed in February 2018 following Arby's acquisition of Buffalo Wild Wings. With the deal, Inspire's portfolio, which includes Arby's, Buffalo Wild Wings, and Rusty Taco, includes more than 8,000 locations with combined system sales exceeding $12 billion, according to figures provided by the company.

"Sonic has had a significant focus on innovation, especially in guest-facing digital technologies," Inspire Brands said in a statement. "In addition, its menu – especially its beverage innovation – is truly unique. Each of these areas are great growth opportunities for Inspire’s current brands."

Sonic rolled out mobile ordering across the US this summer.

Earlier this year, Inspire CEO Paul Brown told Business Insider that the company was looking to acquire more brands that would serve distinct customers.

"Up and down the spectrum, even in QSR, we would want the brands to be as complementary as possible," Brown said. "You don't want brands that are right on top of each other. It's harder from an internal standpoint. You want to keep lines between the brands. If they get too close together, it gets harder to manage."

The deal is expected to close by the end of 2018.

This story is developing.

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