Berlin based Delivery Hero continues to expand globally as it sets to acquire Turkey’s Yemeksepeti for a massive $589 million deal funded through cash and shares, the company announced on Tuesday.
Yemeksepeti is one of the largest online segments brought by a foreign company as US based eBay purchased Turkey’s Gittigidiyor for $217 million in 2011.
Turkey’s food ordering platform was first established 15 years ago. Since then, they have played an important role innovating the food ordering system in the country.
“All the way through 15 years we have had many approaches from global and local investors however, we were waiting for the right time and the right partner. Today, I am delighted to team up with a company whose global ambitions, corporate culture and way of doing business are so aligned with ours,” said Nevzat Aydin, Yemeksepeti’s founding CEO.
Aydin will continue to direct the organisation but will also join Delivery Hero as a senior adviser.
Yemeksepeti shareholders will also benefit from this deal as they will now own shares in Delivery Hero as well.
The Berlin based ordering platform first began operating in 2011 and has now evolved into one of the fastest growing companies. Today, it operates in 28 different countries and has more than 100,000 participating restaurants.
Aspiring to reach the Middle Eastern market, the online giant acknowledges that Yemeksepeti is a profitable investment, as it operates not only in Turkey but in many other countries.
“We have looked at many businesses in our industry around the world, but we have rarely seen Key Performance Indicators as exceptional as those displayed by Yemeksepeti: Customer cohorts and reorder rates are among the best in the world and far superior to those shown by our listed peers," said Niklas Ostberg, CEO of Delivery Hero.
It has more than 3 million orders a month globally and grows at 60 percent each year.
Turkey’s online ordering platform also extends to the Middle Eastern market through their partnership with ordering platforms in that region such as foodonclick.com and ifood.jo.