Time Out sells stake in restaurant tech firm Flyt to Just Eat

Media and entertainment business Time Out Group announced on Tuesday that it has completed the sale of its stake in Flyt, formerly known as Flypay, to online takeaway service provider Just Eat.

The AIM-traded firm said it received £9.6m in proceeds for its entire stake, which represented a £4.5m profit on disposal or an 88% increase over the previously-reported investment holding.

Time Out said it made a strategic technology investment in Flyt in July 2015.

During its investment, Flyt had “significantly scaled” its operations, grown revenues and expanded to more than 3,000 quick service and branded restaurants.

Just Eat made a minority investment in Flyt in 2016, making the full exit to Just Eat a “great outcome” for both Time Out and Flyt, the board explained.

Time Out said it would use the proceeds to invest in one of its top strategic priorities, which remained the global rollout of its Time Out Market brand following the success of the first site in Lisbon, which attracted 3.6 million visitors in 2017.

This year, five new Time Out Markets were set to open in North America, including in Miami, New York, Boston, Chicago and Montreal, which would be the group's first management agreement.

“We would like to thank Flyt founders Tom Weaver and Chris Evans and the wider team for their excellent work in developing their business during the last three years,” said Time Out chief executive officer Julio Bruno.

“Just Eat's investment announced today proves that this is a success story and we are proud to have been part of it.

“We wish them all the very best as they take the business forward to the next phase of growth in partnership with Just Eat.”

Tom Weaver, chief executive officer of Flyt, said that during the period of Time Out’s investment, his company had “significantly grown” the business which now supported thousands of restaurants in both Europe and North America.

“We are excited to be part of Just Eat and look forward to working with them and our other partners to further develop the business.”