Saudi Arabia-based food delivery app Jahez has fully acquired The Chefz, a Saudi Arabia-based dessert delivery platform for $172.9 million.

Earlier this year, Jahez, founded by Ghassab Al Mandel in 2016, was listed on the Saudi Exchange’s Parallel Market (Nomu), with a market capitalisation of $2.4 billion.

Once the acquisition is completed, the share capital of Jahez will increase from $27.9 million to $28.9 million.

Source: Saudi Gazette

Saudi food delivery app Jahez signed a share purchase agreement (SPA) to acquire 100% share capital of The Chefz for SR650 million ($172.9 million), according to a bourse filing on Wednesday.

The deal is still subject to regulatory approval and is expected to close in the first quarter of 2023, the filing mentioned.

The transaction includes a cash consideration worth SR325 million and the issuance of new shares in Jahez with a value of SR325 million, representing 5% of the delivery firm’s share capital.

The company, known as Jahez Company for Information System Technology, signed the SPA with Abdulrahman Abdullah Alshabanat, Abdulrahman Ahmed Almarshed, Abdullah Mohammed Aldosari, Saqr Fund L.P, Impact46 Seed Fund/Impact Seed Fund Co., and Muthmir for Investment Co.

As part of the deal, the founding members of The Chefz will receive an earn-out of SR100 million in cash, subject to various performance-related targets attained between January 1, 2022, and December 31, 2022.

Once the acquisition is completed, the share capital of Jahez will increase from SR104.9 million to SR108.7 million.

Chefz is the owner of Best Chefs Catering Company, which operates a delivery app specializing in sweets, flowers and perfumes.

“The transaction will allow Jahez to complement its leading food delivery platform in quick service with The Chefz’s offerings in fine dining, confectionery, and leisure goods,” Jahez said.