(Reuters) – Ride-sharing company Uber Technologies Inc has agreed on a deal to buy food-delivery app Postmates Inc in a $2.65 billion all-stock agreement, Bloomberg News reported bloom.bg/2Z0TVcd late Sunday, citing people familiar with the matter.

The deal has been approved by Uber’s board and could be announced as soon as Monday, Bloomberg reported, adding that Pierre-Dimitri Gore-Coty, head of Uber’s food delivery business, Uber Eats, is expected to continue to run the combined delivery business.

Uber and Postmates did not immediately respond to a Reuters request for comment.

Last week, Reuters reported that Postmates had revived plans for an initial public offering following dealmaking in the U.S. online food delivery service sector that sparked acquisition interest in the company.

Postmates was last valued at $2.4 billion, when it raised $225 million in a private fundraising round last September.

Founded in 2011, San Francisco-based Postmates accounted for 8% of the U.S. meal delivery market in May, according to analytics firm Second Measure.

Uber had plans to also acquire Grubhub Inc through its Uber Eats business, but walked away from the deal as Just Eat Takeaway.com NV eventually reached a $7.3 billion agreement last month to buy the U.S. online food delivery company.

Reporting by Kanishka Singh in Bengaluru, Editing by Sherry Jacob-Phillips

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