Saudi food delivery start-up Jahez is going ahead with its plan to acquire rival company The Chefz, according to a bourse filing on Wednesday. 

The company, also known as Jahez Company for Information System Technology, signed a share purchase agreement (SPA) on Tuesday to acquire 100% of the share capital of The Chefz for SAR 650 million ($172.9 million). 

The deal is still subject to regulatory approvals and is expected to close in the first quarter of 2023, the company told the Saudi Stock Exchange (Tadawul). 

The transaction includes a cash consideration worth SAR325 million and issuance of new shares in Jahez with a value of SAR325 million, representing 5% of the delivery firm’s share capital. 

As part of the deal, the founding members of The Chefz will receive an “earn-out amount” of SAR100 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 SAR104.9 million to SAR108.7 million. 

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

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

Jahez listed its shares on Tadawul’s parallel market, Nomu early this year. Its debut marked the first listing of a technology start-up on the Saudi bourse.  

(Reporting by Cleofe Maceda; editing by Daniel Luiz)