Online takeaway firm Just Eat is acquiring Australian and New Zealand online takeaway company Menulog for A$855 million (£445 million).
Menulog is said to have over 5,500 restaurants on its books and 1.4 million active consumers. In the three months ended 31 March, Menulog says it has seen year-on-year order volume growth of 96 percent.
David Buttress, CEO of Just Eat, said that since the firm’s IPO last year, it has targeted further “industry consolidation” through acquisition.
Earlier this year, Just Eat acquired a Mexican startup for an undisclosed fee as it sought to expand in Central and South America. At the same time, Just Eat announced that it had increased its stake in Brazil’s iFood from 25 percent to 30 percent.
“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 business,” he said.
“The Menulog founders have together built a great business and I look forward to working closely with Menulog’s CEO and his experienced management team in the coming months.”
Dan Katz, CEO of Menulog, added that the takeover 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”.
Menulog generated £13.5 million in revenues for the 12 months ended March. Just Eat will raise the funds to buy Menulog through an equity fundraising underwritten by JP Morgan Cazenove, which is expected to be completed in “early to mid June 2015”, said Just Eat.