Doughnut company Krispy Kreme Doughnuts Inc. announced Friday it will acquire majority ownership of Insomnia Cookies, a Philadelphia-based late-night dessert delivery company.

The terms of the deal were not disclosed, though sources had previously told CNBC that the deal could value Insomnia Cookies at less than $500 million.

“While our companies will continue to operate independently, these two great brands can learn a great deal from each other as we each continue to expand and grow,” Krispy Kreme CEO Mike Tattersfield said in a press release.

The acquisition of Insomnia Cookies further expands the portfolio of JAB Holding Co., a Luxembourg-based investment conglomerate that bought Krispy Kreme for $1.35 billion in 2016. In recent years, JAB Holding has also acquired ownership in Panera Bread, Peet’s Coffee, the parent company of Einstein Bro.’s Bagels and various other growing food-and-beverage companies.

Founded in 2003 by University of Pennsylvania undergraduate Seth Berkowitz, Insomnia Cookies went from a student-run start-up to a nationwide hit delivering late-night cravings at more than 100 locations. The company has thrived doing business with college students, and most of its stores are open until 3 a.m.

Berkowitz said in the press release that Krispy Kreme is “the ideal partner to support Insomnia through our next phase of growth.”

Krispy Kreme was founded in 1937, and operates more than 300 stores in the U.S. and over 800 overseas. The company both packages its products for retail and sells them directly to customers, and it has become famous for its signature glazed doughnut.