In a deal valued at $575 million, Jack in the Box will acquire Del Taco Restaurants, a quick-service Mexican restaurant chain with approximately 600 restaurants spanning 16 states.

When combined, Jack in the Box and Del Taco will have more than 2,800 restaurants spanning 25 states with similar guest profiles and menu offerings.

The combined company intends to leverage Jack in the Box and Del Taco’s strengths and their shared approach to building out markets, allowing Jack in the Box to support growth plans for both brands, per a release announcing the deal. For example, it is expected that Jack in the Box will benefit from Del Taco’s operations, construction, and development expertise to drive more efficient expansion supporting its long-term objective of 4% annual unit growth by 2025. Earlier this year, Del Taco introduced a scalable restaurant prototype that works with a variety of real estate locations. By leveraging Jack in the Box’s broader footprint, re-franchising experience, and digital capabilities, the combined company expects to drive energized growth at both brands in existing and new markets.

“This is a natural combination of two like-minded, challenger brands with outstanding growth opportunities,” says Darin Harris, CEO of Jack in the Box. “Together, Jack in the Box and Del Taco will benefit from a stronger financial model, gaining greater scale to invest in digital and technology capabilities, and unit growth for both brands. Del Taco has a loyal, passionate guest base and a strong operating model, and we believe that we can leverage our infrastructure, experience refranchising, and development strategy to support Del Taco’s growth plans and expand Del Taco’s footprint.”