The online takeaway delivery service has made one of the biggest acquisitions ever made in the industry.

After only a few days ago posting like-for-like orders have jumped 47% this year the online takeaway business is spending 855m Australian dollars (£437m) for its Australian competitor Menulog, funding the deal by issuing new shares.

Menulog has over 1.4 million registered customers in Australian and New Zealand with £13.5m in revenue and £1.2m in underlying earnings in the year up to March. Investors however don’t appear too pleased; shares of just eat crashed in early morning trading on the LSE.

Despite opening higher, Just Eat fell as much as 8.5%. Traders will certainly be concerned about what price the new shares will be sold at but the main issue is the price they have paid for Menulog is 379 times earnings for the business.

Just Eat said that Menulog is “growing rapidly”, order volumes have nearly doubled in the January-to-March period in comparison to the previous year however even if sales double for the full year it isn’t exactly a bargain.

Just Eat believe the Australian and New Zealand markets could be worth £1.6 billion ($2.47 billion) eventually, with online takeaway penetration at just 22% at the moment.

Jonathan Buxton from Cavendish Corporate Finance said: “How hungry Just Eat is to expand internationally is perfectly illustrated by its decision to snap up Australian takeaway market leader Menulog for such a mouth-watering price.”

“Culturally it should be a good business fit, as the Australian takeaway delivery market has parallels with the UK, including a strong takeaway food culture, fast-growing e-commerce adoption and a fragmented restaurant market.”

Just Eat’s biggest competition is Germany’s Delivery Hero who are also acquiring as many other restaurant ecommerce businesses as they can. Delivery Hero owns Hungry House in the UK and this week has spent £380 million ($587 million) on Yemeksepeti.com, the Turkish equivalent.