Delivery Hero, the German local delivery platform that is present in countries such as Asia, Europe, Latin America, the Middle East or North Africa, has signed an agreement with several shareholders of Glovo to acquire a 39.4% stake in the company. Therefore, the German company is now Glovo’s largest shareholder.
Delivery Hero had already acquired 44% of Glovo shares in the last investment rounds made by the Spanish company. With the new shares acquired add up to more than 80%.
The co-founder and CEO of Delivery Hero, Niklas Östberg He also wanted to echo the news and published a tweet.
The agreement signed between the two companies makes Glovo shareholders become Delivery Hero shareholders. The rest of the shareholders have been granted a period of time to decide if they want to adhere to the agreement. Although, in the statement they explain that “closing of the transaction is subject to certain customary conditions and regulatory approvals, including multi-country merger control authorization, and expected to occur in the second quarter of 2022“.
The statement also states that Glovo will continue operations with its existing brand and platform under its current management team led by its two founders who will continue to invest in Glovo. Together with Delivery Hero, they will leverage shared technology to further improve efficiency and accelerate product development.
Oscar Pierre, CEO of Glovo has said: “I started Glovo in 2015, right after college, and I find it amazing how technology can have so much impact in such a short time… We are creating a new online opportunity for local merchants and providing income opportunities to the couriers who work with our platform. With the markets we serve today, we can serve a total population of more than 700 million people. I believe our potential is untapped and I am happy to have found a partner that matches our ambition, culture and will continue to support this adventure that we have embarked on to further drive innovation, strengthen our multi-category offering and create additional value for all our stakeholders and the industry”
How much did this transaction cost?
The transaction has a value of 780 million euros and offers an extra 380 million euros to reach 100% of Glovo. Delivery Hero has had to carry out a capital increase for an amount of 7.9 million shares, the equivalent of 2.8% of the valuation of the German company.
Niklas Östberg believes that this union will be very positive for the two companies, as they are complementary and will be able to help each other to have a greater geographical presence and avoid overlapping.
Glovo will close the 2021 financial year with a turnover of 800 million euros And it is leader in 16 of the 25 markets in which it is present. While Delivery Hero has not yet published the data for 2021, but in 2020 with a revenue of 2,471.9 million euros and lost 1,402 million, and a year earlier it had closed with an income of 230 million.