Urbanspoon scooped up by IAC

Internet giant IAC revealed this morning in conjunction with its quarterly earnings announcement that it has acquired Seattle startup Urbanspoon – the online restaurant guide recently touted for its slot-machine style iPhone app.

IAC today announced the acquisition of Urbanspoon, a leading online local restaurant guide that aggregates restaurant reviews from across the web, from newspapers and professional food critics to bloggers and diners. Urbanspoon will remain an independent brand and a wholly-owned business of IAC, and will report to Jay Herratti who oversees Citysearch, InsiderPages and Evite. Terms of the deal have not been disclosed.

For IAC, Urbanspoon rounds out a portfolio of premium local brands which include Citysearch, ServiceMagic, InsiderPages, and strategic investments in OpenTable and MerchantCircle. With a wealth of trusted restaurant content, an avid user community, and a leading iPhone application, the acquisition of Urbanspoon will further solidify IAC’s leadership role in the local space.

The deal apparently closed back on February 13th and the purchase price wasn’t disclosed however Urbanspoon co-founder Ethan Lowry referred to it as “a compelling offer in a pretty crummy economy.”

Urbanspoon will continue to operate as an independent brand, and it will remain in Seattle, an IAC spokeswoman this morning. Even though the purchase price wasn’t disclosed, IAC has promised to limit itself to deals of $100 Million or less and PaidContent.org’s Staci Kramer estimates the price was “in the low double-digit millions.”

Urbanspoon was founded in 2006 by Ethan Lowry, Adam Doppelt and Patrick O’Donnell – all former Jobster employees – and self-funded to date.