Delivery Hero, the German online food delivery platform, has entered an agreement to buy an additional 39.4% stake in the Spanish food delivery app, Glovo.
Currently, Delivery Hero owns 44% interest on a non-diluted basis in Glovo, and upon completion of the latest deal, it will become a majority shareholder in the Spanish company. In September 2020, the German online food-delivery service announced that it was acquiring the Latin American operations of Glovo for up to €230 million, including a €60 million performance-based earn-out.
Delivery Hero co-founder and CEO Niklas Östberg 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.”
As per the terms of the deal, Delivery Hero has agreed to issue its own shares to Glovo shares sellers.
Completion of the deal is subject to obtaining relevant regulatory approvals and is expected to take place in the second quarter of this year.
