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September 17, 2020

Delivery Hero signs agreement to acquire Glovo in Latin America

German delivery app Delivery Hero has signed an agreement to acquire on-demand delivery start-up Glovo’s operations in Latin America in a deal valued at €230m.

German delivery app Delivery Hero has signed an agreement to acquire on-demand delivery start-up Glovo’s operations in Latin America in a deal valued at €230m.

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The deal amount also includes a €60m performance-based earn-out.

According to the agreement, Delivery Hero will acquire Glovo’s business in all Latin American countries, including Peru, Ecuador, Argentina, Panama, Costa Rica, Guatemala, Honduras and the Dominican Republic.

The company already has a footprint in Argentina, Panama and the Dominican Republic, and the newly acquired assets in these markets will be combined to its existing businesses at closing.

The company said that Glovo will continue to operate the business in these countries until March next year.

Delivery Hero CEO and co-founder Niklas Östberg said: “Latin America is a region with exceptional growth potential for online delivery.

“Acquiring Glovo’s local operations gives us the opportunity to double down on our efforts to drive innovation, continuously improve customer experience and support local vendors in the region. We have been working closely with Glovo for many years and are proud to incorporate their Latin American services into our global network.”

Glovo CEO Oscar Pierre added: “This deal will allow us to strengthen our presence in those markets where we are already very strong while also allowing us to invest in new markets where we see huge growth potential and opportunity. We truly believe that Delivery Hero is the best possible partner to take the business we have built in Latin America to the next level.”

Subject to closing conditions and regulatory approvals, the transaction is expected to close within the next few weeks.

Last month, Delivery Hero acquired a 100% stake in online grocery marketplace InstaShop in a deal valued at $360m.

Last year, the company agreed to acquire South Korean food delivery app operator Woowa Brothers for $4bn.

Free Report
img

Meet emerging digital demand in the foodservice industry

Global digital pressures are making waves across sectors. The foodservice industry is seeing particular impact as consumers change the way they operate. It is therefore essential to know how to navigate the challenges that digital is presenting to the industry and its consumers. GlobalData’s free report explores the market outlook for the global foodservice industry, with insights into how foodservice operators, brands, and their suppliers can meet changing demands. Key features in this report include:
  • An overview of dine-in, takeaway, and delivery forecasts up to 2026
  • Areas foodservice industry players should be focusing on for digital investment
  • Consumer insight into attitudes towards digital convenience
  • Challenges facing foodservice, in terms of investment and logical considerations
  • Key examples of top industry players
Adapt and stay on top. Download our free report now.
by GlobalData
Enter your details here to receive your free Report.

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