UK-based online food delivery firm Just Eat has announced a £94.7m deal to acquire four similar companies from German startup builder Rocket Internet as the company aims to expand beyond the crowded UK market and into Europe and the Americas.
The company will be acquiring La Nevera Roja in Spain, Italy's PizzaBo and Hellofood Italy, plus Hellofood Mexico and Brazil in their home countries. Rocket Internet is the owner of the European companies, and main investor in the American firms.
The acquired businesses will be used to complement the firm's existing operations in those four countries, bringing scale, focus and new talent to its local operations in four key markets, which have a combined takeaway delivery market worth over £8bn. As a result of the acquisitions, the company's stock rose more than nine per cent in early trading.
"This transaction reflects our ambition to make strategic, value-enhancing acquisitions that consolidate our leadership of the global digital marketplace for takeaway food delivery," said David Buttress, CEO of Just Eat. "Just Eat has enhanced its market-leading positions in geographies that we understand and where our existing businesses are performing strongly.
"We are delighted to welcome our new team members to the Just Eat family, and we look forward to working with them to improve the takeaway experience for both restaurant partners and consumers in Spain, Italy, Brazil and Mexico."
"This sale to Just Eat represents a positive step forward for the global online takeaway industry, enabling all parties to focus their resources on building bigger and better long-term businesses in their key geographies," said Oliver Samwer, CEO and founder of Rocket Internet.