London-based Just Eat plc (LSE:JE), a leading digital marketplace for takeaway food delivery, has agreed to acquire four businesses from Germany’s Rocket Internet SE (XETRA:RKET) and foodpanda for €125.0 million ($140 million).
Rocket Internet divested none-core online takeaway food operations in Spain (La Nevera Roja), Italy (PizzaBo/hellofood Italy), Brazil (hellofood Brazil) and Mexico (hellofood Mexico) with the ostensible goal of further simplifying the complexity of its organizational structure.
“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, Rocket Internet.
The acquisitions in Italy, Brazil and Mexico are set to close today. The Spanish deal is expected to close by the end of Q2 2016, subject to regulatory approval from the local competition authority.
“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 Just Eat’s CEO David Buttress.
“The divestment in Latin America allows us to focus on our key markets across Asia, the Middle East and Eastern Europe where foodpanda has a market leading position and to which we can now dedicate more resources and capital to grow our business and improve the efficiency of our operations. We are on a very good path to reach our global growth target,” said Ralf Wenzel, co-founder and CEO of foodpanda.
The takeaway delivery market in these four markets is worth over £8 billion, says the company. In aggregate, the acquired businesses grew orders by 83% in 2015, and Just Eat expects the transaction to be accretive to earnings in 2016, and to add £5 million to 2017 EBITDA.
Just Eat plc operates a leading digital marketplace for takeaway food delivery. Headquartered in London, the company uses proprietary technology to offer a quick and efficient digital ordering service for over 13.4 million users and over 61,000 takeaway restaurants. Just Eat is a member of the FTSE 250 Index.
Rocket Internet is a German internet company founded in Berlin in 2007 by brothers Marc, Oliver and Alexander Samwer. The company builds online startups and owns shareholdings in various models of internet retail businesses. The company model is known as a startup studio or a venture builder. Its stated mission is “to become the world’s largest Internet platform outside of the United States and China.” The company identifies and builds proven Internet business models and transfers them to new, underserved or untapped markets where it seeks to scale them into market leading online companies. The company has now more than 30,000 employees across its network of companies, which are active in more than 110 countries across six continents. the company has a market capitalization of €3.52 billion.