Just Eat has agreed to acquire its former online food delivery competitor Hungryhouse from Delivery Hero for £200m.
An additional £40m may also be paid for the FoodTech startup, subject to its performance between the signing and completion of the transaction.
The acquisition, which will be funded through cash and credit facilities, will enable Just Eat to expand its customer base as well as the number of restaurant partners on offer to its consumers.
David Buttress, CEO of Just Eat, commented: “The UK has long been an engine of growth for Just Eat. While we have significantly expanded internationally in recent years, we have remained focused on building a high growth, sustainably profitable business domestically.
“Through this transaction, we would extend our market presence in the UK and sustain high levels of growth given the considerable opportunity in this market.”
Once acquired, Just Eat expects Hungryhouse to generate EBITDA of £12-15m after a full year.
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Niklas Östberg, CEO of Delivery Hero, said: “The sale of Hungryhouse to Just Eat rationalises our global footprint, and we remain focused on operating market leading brands, globally.
“Proceeds from this sale will allow us to pursue further global growth and profitability opportunities,” he added.