This move follows Just Eat’s acquisition of Mexican takeaway site SinDelantal in February & Menulog’s merger with EatNow in the same month
Online marketplace for takeaway food Just Eat struck a deal to acquire Menulog, a food takeaway platform in Australia and New Zealand, for a massive sum of US$676 million.
The amount will be fully paid for through selling new shares in Just Eat.
Through this deal, Just Eat intends to expand into the two food takeaway markets worth US$2.3 billion in total, according to an official release.
This move follows Just Eat’s acquisition of Mexican takeaway site SinDelantal for an undisclosed sum in February as well as Menulog‘s merger with rival EatNow in the same month.
Both companies have similar business models, serving as online directories to diners and restaurants that enable its users to order and pay for meals through its portal and have them delivered at their doorstep.
The two countries are ideal markets for Just Eat’s expansion due to the following factors — strong takeaway food culture, a fragmented restaurant market, high levels of disposable income and a high level of e-commerce adoption in the region.
Presently, Menulog holds the status of being one of the leading food takeaway site in both countries, generating US$20 million worth of revenue since its inception, with 6.3 million orders made on the site last year. Its userbase has 1.4 million active customers, with access to Menulog’s database of 5,500 restaurants.
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“This proposed acquisition will allow Menulog to benefit from Just Eat’s experience and know-how, particularly in digital marketing, and enhance our customer service model to drive further growth and efficiencies across the business,” said Menulog CEO Dan Katz.
Just Eat operates in 13 countries globally, with six million active users and 40,800 restaurants on its platform. The company claims that it racked up over a billion dollars of revenue for its restaurants in 2013.
According to Just Eat, the deal will create a group that will register over 67 million orders annually.
“Since the time of our IPO last year, we have consistently stated that participating in a disciplined manner in industry consolidation was an important strategic objective for Just Eat. The acquisition of Menulog, a business with strong leadership in an attractive and fast-growing market, is fully consistent with this approach and will be an important addition to the Just Eat business,” stated Just Eat CEO David Buttress.
The company plans to maintain the Menulog and EatNow branding for now but is considering integration opportunities in the future.
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