The deal was signed in Seoul on Friday to take over Woowa Brothers, the company behind South Korea's most popular food delivery app.
The statement also said that both the companies would create a joint venture in Singapore to tap the booming food delivery market in Asia.
Delivery Hero's Yogiyo app ranks second behind Woowa's Baedal Minjok in South Korea, but the sector leader faces stiff competition from rivals such as e-commerce firm Coupang, backed by Japan's deep-pocketed SoftBank Group.
Berlin-based Delivery Hero, which acquired Foodpanda in 2016, is about to bring a new player to the food delivery race in Singapore. The deal values Woowa Brothers at $4bn. The deal was a "survival strategy", a Woowa spokesman said.
Baedal Minjok and Yogiyo have played a key role in expanding South Korea's delivery service app market.
"The (food) delivery market has been flooded with enormous Japan-backed capital and influential online platforms, leading Woowa to factor in partnership as a survival strategy", said a spokesman at Woowa Brothers.
Woowa's founder and CEO Kim Bong-jin said working with Hero Delivery would allow him to "facilitate expansion in Asia and further penetrate Korea's high-potential market".
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Shares of the delivery hero climbed 16% to 58.22 euros by noon on the Frankfurt MDAX mid-range for the Woowa takeover news.
Founded in 2010 as a food delivery company, Woowa Brothers quickly became the country's top online food delivery services firm, enjoying over 10 million monthly active users in a country with a population of 51 million. Regional players like Singapore-based Grab and Indonesia's Gojek are already well implanted.
The delivery hero has emerged to become one of Germany's most successful startups since it was founded in 2011.
The growing global food delivery trade has triggered deal-making, stock market listings and rising valuations.
Delivery Hero has received $523 million in investment in 2014 alone with investors including Insight Venture Partners, Luxor Capital Group, Kite Ventures, Team Europe, ru-Net, Tengelmann Ventures, Point Nine Capital, Vostok Nafta, and Phenomen Ventures.
Delivery Hero sold its German food delivery businesses to Takeaway.com past year in exchange for cash and an equity stake in the buyer.