German delivery app Delivery Hero has agreed to acquire hugo’s food delivery and quick commerce business in Central America and the Caribbean.
Established in 2017, hugo operates in more than 40 cities across six countries, including Guatemala, El Salvador, Honduras, Nicaragua, Jamaica and the Dominican Republic.
The hugo app is used by more than 1.3 million users for food, grocery and pharmacy deliveries. The app also offers financial services.
hugo co-founder and CEO Alejandro Argumedo said: “I am personally excited to join forces with Delivery Hero, one of the largest food delivery companies in the world, so that together we can expand our reach and continue delivering world-class experiences to our customers and partners throughout the region.”
The deal will bolster Delivery Hero’s footprint in Central America and expand the company’s operations to Jamaica.
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The deal values hugo based on a run rate gross merchandise value (GMV) of more than $150m and multiples in line with Delivery Hero.
Subject to receipts of regulatory approvals, the deal is expected to close in the first quarter of next year.
Delivery Hero co-founder and CEO Niklas Östberg said: “With the acquisition of hugo’s food and grocery delivery verticals, we are also giving an extra boost to our quick commerce operations locally.
“Alejandro and his team have built a successful track record in spotting potential in underserved markets and outperforming global industry peers.
“Today, we see even more growth and expansion opportunities for hugo, and we are excited to welcome them in our community of entrepreneurs to further push the boundaries of the delivery industry worldwide.”
Last September, Delivery Hero signed an agreement with Glovo to acquire its operations in Latin America for €230m.