Deutsche Post DHL, the world’s leading mail and logistics group, agreed to acquire UK Mail, one of the largest integrated mail and parcel operators within the UK, for £242.7 million ($316 million) in cash.

“UK Mail is a well-run business and an established provider of quality delivery services in the UK and offers a complementary fit with our integrated offering,” said Jürgen Gerdes, board member of Deutsche Post DHL.

“With this acquisition, we will further extend our network and have a strong foothold in Europe’s three largest e-commerce markets, the United Kingdom, Germany and France, which account for over 60 per cent. of online retail in the continent,” he added.

UK Mail offers parcel and mail delivery solutions both locally and worldwide, with a national network of more than 50 sites and 2,400 vehicles.

The offer price of 440 pence per share represents a premium of 43.1 percent to UK Mail’s stock closing price of 307.5 pence on September 27, 2016, and a premium of 43.2 percent to its volume-weighted average price for the previous three-month period.

The boards of directors of both companies have unanimously approved and recommended the deal, which is subject to shareholder and regulatory approval and other customary closing conditions.

Deutsche Post DHL has received irrevocable undertakings from shareholders representing in aggregate 60.00 percent of UK Mail’s ordinary shares, including the Kane family who are the controlling shareholders, to vote in favor of the deal.

“The Board believes that UK Mail will benefit significantly from becoming part of Deutsche Post DHL, and will be better positioned to continue to develop our parcels and mail businesses,” said Peter Kane, chairman and founder of UK Mail. “Furthermore, the Offer provides UK Mail Shareholders with the opportunity to realise their investment for cash at a significant premium to the levels at which the share price has traded in recent months.”

Deutsche Bank AG is acting as financial adviser to Deutsche Post DHL. Investec Bank plc is acting as financial adviser to UK Mail.

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