ComfortDelGro, one of Singapore's leading transport operators, is buying London's largest operator of its famed black taxis in a deal worth almost $350 million.
On Wednesday, ComfortDelGro which, among other things, operates two lines of Singapore's Mass Rapid Transit subway system, announced that its wholly-owned subsidiary CityFleet Networks will acquire Addison Lee, the largest premium point-to-point operator in the U.K.
Upon completion, the deal will add 7,500 drivers and 5,000 vehicles to CityFleet's existing private-hire and black taxi fleets throughout the U.K., including the cities of Liverpool and Aberdeen.
Addison Lee says it operates about 2,500 black cabs in London. That equals to about 16% of the entire London taxi fleet of 15,100 cars, according to government data.
"This acquisition will enable us to leverage Addison Lee's expertise to deepen and scale our premium point-to-point capability globally," said ComfortDelGro's CEO Cheng Siak Kian in a statement announcing the acquisition.
ComfortDelGro is already a player in the U.K. public transport market. It's the third-largest bus operator in London, managing about 17% of the city's scheduled bus services. The company also operates about 1,800 private-hire cars and taxis in the U.K.
Buying Addison Lee will grow ComfortDelGro's taxi and private-hire network to more than 34,000 vehicles globally, which include markets like mainland China and Singapore.
The Addison Lee deal adds to ComfortDelGro's expanding global portfolio. Earlier this year, the company won a $532 million contract to operate four public bus franchises in the U.K. city of Manchester, starting 2025.
Then, in September, the company won three bus contracts worth $1.1 billion in Victoria, Australia.
ComfortDelGro is also expanding its rail operations, including an 11-year contract to operate and maintain the entire Stockholm Metro, with its 100 stations and 107 kilometers of track. The Singaporean company will also start running part of the Paris Metro by the end of next year.
In an interview with Fortune, Cheng said he expected that overseas markets will soon contribute half of the company's revenue in the near future. ComfortDelGro currently operates in a dozen countries and reported $2.9 billion in revenue last year, placing it at No. 128 on Fortune's Southeast Asia 500 ranking.