Tech champions join forces: Delivery Hero signs agreement to become the majority shareholder of Glovo
- Delivery Hero and a number of Glovo shareholders signed an agreement today, whereby Delivery Hero will reach a majority stake in Glovo
- Having built a superior multi-category offering, Glovo holds leading positions in 16 of its 25 markets, accounting for more than 70% of its GTV, and has a run-rate of approximately EUR 3 billion in GTV with an annual organic growth rate of 80% in 2021
- The transaction is expected to close in the second quarter of 2022, subject to obtaining relevant regulatory approvals
- Glovo will continue operations with their current platform, brand and leadership team
- Delivery Hero and Glovo, both being pioneers of quick commerce, will further strengthen their leadership positions and drive innovation to shape the future of delivery together
Berlin, 31 December 2021 – Delivery Hero SE (“Delivery Hero”), the world’s leading local delivery platform, today signed an agreement with a number of shareholders of Glovoapp23, S.L. (“Glovo” or “the Company”) to acquire an additional 39.4% stake in the Company (on a non-diluted basis) in exchange for Delivery Hero shares, making Delivery Hero the majority shareholder of Glovo after closing.
As European-born tech champions, Delivery Hero and Glovo complement each other with their profound delivery expertise and geographical footprint. The two companies are united behind a shared passion for multi-category delivery and quick commerce as well as their vision for the industry. Delivery Hero and Glovo are both founding members of the European Purpose Project and have been leading the European discourse on the future of platform work.
The Delivery Hero team has admired and supported Glovo for many years. They have been frontrunners in the industry by offering a multi-vertical service from the start. Their product focus and fast execution have given them a leading position in 16 out of 25 markets, despite having launched a number of years later than their peers. 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
I started Glovo in 2015 right after college, and I find it incredible how technology can have so much impact in such little time. We’ve changed how millions of users get their local products and manage their time in a city. We’re creating a new online opportunity for local merchants and providing earning opportunities to couriers working with our platform. 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
Glovo – the leading multi-category delivery platform across Europe, Central Asia and Africa
Glovo is a pioneering multi-category app connecting users with businesses and couriers, offering on-demand services from local restaurants, groceries and supermarkets, pharmacies, and high street retail stores. The company has a complementary footprint to Delivery Hero, operating in over 1,300 cities in 25 countries across Europe, Central Asia and Africa. In many of their markets, Glovo has become the most loved app, connecting approximately 15 million active users annually with 70,000 monthly active couriers and 130,000 monthly active partners. Today, Glovo has a run-rate of approximately EUR 3 billion in GTV with 80% organic growth rate in 2021 and EUR 800 million in revenue (1).
Details of the transaction
Delivery Hero has been an investor of Glovo for many years and currently holds approximately 44% interest on a non-diluted basis. 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 remaining Glovo shareholders (including pre-approved new shareholders) will be able to adhere to the agreement during a period of time prior to closing. In exchange for the Glovo shares, Delivery Hero will issue its own shares to the sellers at a fixed exchange ratio that implies a GMV multiple valuation of Glovo in line with Delivery Hero’s current trading levels.
After closing, Glovo will continue operations with their existing brand and platform under their current management team led by its two founders who will remain invested in Glovo. Together with Delivery Hero they will leverage shared technology to further improve efficiencies and accelerate product development.
J.P. Morgan acted as financial advisor and Cuatrecasas as legal advisor to Delivery Hero, while Morgan Stanley acted as financial advisor and Latham & Watkins as legal counsel for the selling shareholders. Uría Menéndez acted as legal counsel to Glovo.
Flash Update on January 11, 2022
Delivery Hero will publish a Flash Update on 11 January 2022 to provide insights into Glovo’s business model, financials and competitive positioning as well as the rationale behind this transaction and Delivery Hero’s planned path to profitability. More information will be shared on Delivery Hero’s corporate newsroom and Investor Relations website. Please click here for a preview of the Flash Update presentation.
ABOUT DELIVERY HERO
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. Additionally, Delivery Hero is pioneering quick commerce, the next generation of e-commerce, aiming to bring groceries and household goods to customers in under one hour and often in 10 to 15 minutes. Headquartered in Berlin, Germany, Delivery Hero is listed on the Frankfurt stock exchange since 2017, and became part of the leading index DAX (Deutscher Aktienindex) in 2020. For more information, please visit www.deliveryhero.com
Glovo is a pioneering multi-category app connecting users with businesses, and couriers, offering on-demand services from local restaurants, grocers and supermarkets, pharmacies, and high street retail stores. Glovo’s vision is to give everyone easy access to everything within their city so that our users can enjoy what they want when they want, where they want. Founded in 2015 in Barcelona, it operates across 25 countries in Southern Europe and EEMEA. For more information about Glovo, please visit https://about.glovoapp.com/en/
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(1) Revenue based on Glovo management accounts
This release may contain forward looking statements, estimates, opinions and projections with respect to anticipated future performance of Delivery Hero SE (“forward-looking statements”). These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “intends,” “may,” “will” or “should” or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. Forward-looking statements are based on the current views, expectations and assumptions of the management of Delivery Hero SE and involve significant known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Any forward-looking statements included herein only speak as at the date of this release. We undertake no obligation, and do not expect to publicly update, or publicly revise, any of the information, forward-looking statements or the conclusions contained herein or to reflect new events or circumstances or to correct any inaccuracies which may become apparent subsequent to the date hereof, whether as a result of new information, future events or otherwise. We accept no liability whatsoever in respect of the achievement of such forward-looking statements and assumptions.