German food delivery group Delivery Hero said on Friday it had signed an agreement to acquire an additional 39.4 per cent stake in Spanish delivery app Glovo.
Delivery Hero currently holds approximately 44 per cent interest on a non-diluted basis.
According to the agreement, in exchange for the Glovo shares, Delivery Hero will issue its own shares to the sellers at a fixed exchange ratio that implies a Gross Merchandise (or Market) Volume valuation of Glovo in line with Delivery Hero’s current trading levels.
“The closing of the transaction is subject to certain customary conditions and regulatory approvals, including merger control clearance in several countries, and is expected to occur in the second quarter of 2022,” the Group said.
“We will continue to invest in Glovo’s team and product, and see many opportunities to further enhance their operations with our resources and expertise,” Niklas Östberg, CEO and Co-Founder of Delivery Hero said.
Delivery Hero is the world’s leading local delivery platform, operating its service in around 50 countries across Asia, Europe, Latin America, the Middle East and North Africa. The company started as a food delivery service in 2011 and today runs its own delivery platform on four continents.
The on-demand delivery platform Glovo, operates across 25 countries in Southern Europe. Glovo entered the African market at the end of 2018 in Morocco. It has operations in Kenya, Uganda and Cote d’Ivoire.
“With the markets we cover today, we can serve a total population of more than 700 million people. I believe our potential is untapped, and I’m happy to have found a partner that matches our ambition, culture and will keep supporting this adventure we’ve embarked on to drive innovation further, strengthen our multi-category offering and create additional value for all our stakeholders, and the industry,” Oscar Pierre, CEO of Glovo.