Saudi Arabia-based food delivery platform Jahez has announced the 100% acquisition of The Chefz, a Saudi Arabian dessert delivery platform for $172.9 million.

Founded in 2016 by Ghassab Al Mandeel, Jahez utilizes disruptive technology to connect users with food merchants and brands. As of March 2021, the company said it had over 1.3 million active users on its platform, 12,000+ merchant branches and more than 34,000 delivery partners in 47 cities across Saudi Arabia.

In January this year, the company was listed on Saudi Exchange’s Parallel Market (Nomu), with a market capitalization of $2.4 billion. The 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.

The deal is still subject to regulatory approvals and is expected to close by Q1 2023. Once the acquisition is completed, the share capital of Jahez will increase from $27.9 million to $28.9 million.

As part of the deal, the founding members of The Chefz will receive an earn-out of SR100 million ($26.6M) in cash, subject to various performance-related targets attained between January 1, 2022, and December 31, 2022.