Gett confirmed on Wednesday that it has acquired rival taxi company Juno.

The deal is worth $200 million (£156 million), according to TechCrunch.

Juno is an Israel-based transportation app but its service is only available in New York City. Acquiring Juno should help Gett, which is backed backed by $300 million (£233 million) from Volkswagen, to compete with larger companies like Uber and Lyft, specifically in New York City.

A source with links to the company that wishes to remain anonymous told Business Insider on Wednesday that Gett will initially pay $100 million (£77.9 million) for Juno and that it will involve mostly stock. A subsequent $100 million will be paid if certain targets are met, the source said.

"It's $100 million immediately and further funding up to another $100 million if they [Juno] achieve growth targets in other cities," said the source.

Founded in Israel in 2010, Gett employs over 1,000 people in Tel Aviv, the US, the UK, and Russia. All of the R&D, however, takes place in Israel. The company has raised over $500 million (£390 million), according to Crunchbase.

This post originally appeared on Business Insider.