Online delivery platform Just Eat has closed the purchase of UK corporate catering marketplace City Pantry for initial cash consideration of £16m ($20.10m).
This transaction follows the agreements signed by Just Eat earlier this year to buy restaurant software groups Practi and Flyt.
The City Pantry acquisition will allow Just Eat to expand its position into the UK corporate catering market.
The company used existing resources to pay the initial cash consideration and expects to pay a further cash consideration following certain operational and financial criteria being met over the next three years.
Established in 2014, City Pantry connects caterers and restaurants with corporate customers by providing food for their employees or clients.
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The company provides more than 120,000 people at 1,000 corporate customers every month.
It works with various suppliers including restaurant groups such as Itsu, Leon and Bill’s to offer meals for corporate events or business meetings.
Just Eat interim CEO Peter Duffy said: “Working with City Pantry to accelerate its mission to improve and modernise the workplace dining experience is a great opportunity for Just Eat. It’s the right time for us to enter the corporate market and expand our offering.
“City Pantry has a well-established business, fantastic expertise and an entrepreneurial spirit that matches our own. We look forward to bringing the company into the Just Eat family and working with them to grow in the UK and internationally in this exciting and dynamic market.”
In addition, Just Eat will use City Pantry’s expertise to offer a wide range of food for delivery to corporate customers while providing restaurant partners with access to pre-scheduled, high-value corporate orders.
The transaction also allows the food delivery firm to expand further into international markets.
City Pantry founder and CEO Stuart Sunderland said: “What we eat in our personal lives has dramatically changed in the past ten years in terms of quality and choice.
“The food revolution is now beginning to happen at work and City Pantry is at the forefront of this. We know that Just Eat shares our belief and we’ve been impressed with its vision of what we can do together.”