Delivery Hero becomes the majority shareholder of Glovo
Delivery Hero SE, the local delivery platform, has signed an agreement with a number of shareholders of Glovoapp23, S.L. 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 companies, 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.
Niklas Östberg, CEO and Co-Founder of Delivery Hero, said: “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.”
Oscar Pierre, CEO of Glovo, said: “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.”
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.
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.