Online takeaway ordering business Just Eat will enter the Australian and New Zealand markets by paying £455 million ($US702 million) its biggest rival there – Menulog.
Menulog’s price tag is pretty hefty given that Menulog’s revenue last year stood at just £13.5 million ($US20.83 million), with earnings at £1.2 million ($US1.85 million).
Just Eat believe the business is worth it – they believe the Australian and New Zealand markets could be worth £1.6 billion ($US2.47 billion) eventually, with online takeaway penetration at just 22% at the moment.
The company, which operates in 13 countries around the world, has been expanding aggressively and Just Eat’s favoured method is buying up existing businesses overseas. In February the company bought Mexican rival SinDelantal for an undisclosed sum.