Just Eat Takeaway has entered a “definitive agreement” with Grubhub that will see it acquire 100% of Grubhub’s shares in a $7.3bn (£5.75bn) deal.
Once the takeover is finalised, the combined group will be the world’s largest online food delivery company outside of China, measured by gross merchandise value and revenues.
In its latest update, Just Eat Takeaway said the transaction marked its entry into online food delivery in the United States, and builds upon the “strategic rationale” for its recent merger with Just Eat.
The merged group will reportedly be built around the U.S, Netherlands, Germany and the UK, increasing its capital and resources in order to “strengthen its competitive positions in all its markets”.
As one of the “few profitable players in this space” the combined group is set to have more than 70 million active customers who place 593 million orders per year.
Once the transaction is complete, Matt Maloney, CEO and founder of Grubhub, will join the Just Eat Takeaway management board, while two current Grubhub directors will join the Just Eat Takeaway supervisory board.
The transaction is subject to the approval of both Just Eat Takeaway and Grubhub’s shareholders, as well as other customary completion conditions. It is expected to be completed in the first quarter of 2021, however.
Jitse Groen, CEO and founder of Just Eat Takeaway.com, said: “Matt and I are the two remaining food delivery veterans in the sector, having started our respective businesses at the turn of the century, albeit on two different continents.
“Both of us have a firm belief that only businesses with high-quality and profitable growth will sustain in our sector. I am excited that we can create the world’s largest food delivery business outside China.”
He added: “We look forward to welcoming Matt and his team to our company and working with them in the future.”
Matt Maloney, CEO and founder of Grubhub, said: “When Grubhub and Seamless were founded, the online takeout industry didn’t exist in the U.S. My vision was to transform the delivery and pick-up ordering experience.
“Like so many other entrepreneurs, we started modestly – restaurant by restaurant in our Chicago neighbourhood. Combining the companies that started it all will mean that two trailblazing start-ups have become a clear global leader.”
