Just Eat Acquires Rival Meal2Go Ahead of Rumoured IPO

Just Eat, the internet takeaway ordering service, has acquired rival Meal2Go to bolster its technological offering ahead of an anticipated flotation onto the London Stock Exchange.

Meal2Go has a central electronic point-of-sale (EPOS) system for managing takeaway orders, whether they come via the web, in the restaurant or over the phone.

The acquisition adds 1,100 takeaway restaurants, mostly in the Birmingham area, to Just East's customer base.

"We know there is huge demand amongst takeaway businesses for great value, high quality EPOS technology, which we will now be able to offer," said Graham Corfield, UK managing director of Just Eat.

"This move is part of our wider strategy to make the bolt-on acquisitions and partnership deals that will ensure we continue to innovate and drive further significant growth for our takeaway restaurant partners."

Just Eat is reportedly eyeing a flotation in 2014 that would value the firm at between £700m and £900m and be the biggest IPO to break out of Tech City in a London-listing.

The IPO has been pencilled in for April or May, with JPMorgan and Goldman Sachs as advisers. As little as 10% of Just Eat may be made publicly available to investors.

Just Eat is funded by five main private equity firms – Index Ventures, Greylock Partners, Redpoint Ventures; SM Trust; and Vitruvian Partners – as well as staff and other private investors.

It was founded in 2001 in Denmark by five entrepreneurs. In 2006 they had moved the business to Britain and now the business operates across four continents with 5.5 million active users.