Online takeaway company Just Eat buys rivals Hungryhouse and SkipTheDishes
Online takeaway company Just Eat has snapped up two of its rivals, Hungryhouse and SkipTheDishes, a Canadian firm.
Shares in the group went up two per cent at the open.
Just Eat paid £200m for Hungryhouse, which it bought from Delivery Hero. The group said a further cash amount of up to £40m "may also be payable, subject to the performance of Hungryhouse between signing and completion of the transaction".
"The sale of Hungryhouse to Just Eat rationalizes our global footprint, and we remain focused on operating market leading brands, globally," said Delivery Hero chief Niklas Östberg.
"Proceeds from this sale will allow us to pursue further global growth and profitability opportunities, as we have consistently and successfully done in recent years. We also want to thank the entire Hungryhouse team – this transaction reflects their amazing achievements within the Delivery Hero Group since 2011."
Just Eat boss David Buttress said: "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."
Just Eat shares reached record highs in the summer of 2016 as the company reported a 40 per cent surge in orders.
Meanwhile, the company's international expansion got another boost with its purchase of Canada's SkipTheDishes, for CAD$110m (£66.1m).
Just Eat said that, "with expected revenue of CAD$23.5m for the current year ending December 2016, SkipTheDishes is one of Canada's largest online food delivery marketplaces and has developed a technologically-advanced delivery platform focused on lower density metropolitan and suburban areas".
Buttress said the deal would "materially strengthen Just Eat's number one position in Canada".
"Canada is a phenomenally exciting country for online food delivery, with significant runway for growth and a clear opportunity to drive channel shift," he added.
"SkipTheDishes' outstanding team, technological know-how and operational excellence has enabled it to develop a business model well-suited to Canada's unique market conditions. It will complement our existing operations so that Just Eat is best-placed to address this fast-growing market."