Deutsche Post DHL has reached an agreement to buy UK Mail, in a deal that values the delivery company at £242.7m.

DHL said the cash offer is part of an ongoing expansion of its European parcel network, designed to meet demand for more cross-border deliveries from its customers.

The acquisition comes after a turbulent couple of years for UK Mail, which saw the installation of incompatible sortation technology at a new site and its profit slashed 80% in the immediate fallout.

Chief executive Guy Buswell stepped down in November 2015, after the company’s figures revealed greater losses than anticipated.

UK Mail chairman Peter Kane, who filled in for Buswell after his departure, said that the UK Mail board believed the company would be “better positioned” to build the company “with the benefit of Deutsche Post DHL’s greater financial and operational resources".

Kane added that there would be “significant synergies” between the companies’ operations, including additional volume from DHL’s global network passing through UK Mail’s operation.

Deutsche Post DHL board member said the acquisition would give DHL a “strong foothold” in the continent’s three largest e-commerce markets, being the UK, France, and Germany.

He added: “UK Mail is a well-run business and offers a complementary fit with our integrated offering.”

The offer is subject to the approval of the UK Mail shareholders, who will be entitled to 440p per share under the agreement.

The shareholders will vote on the deal at the UK Mail general meeting, the date of which is yet to be announced.