Delivery Hero becomes Glovo’s majority shareholder. The German platform, present in fifty countries throughout Asia, Europe, Latin America, the Middle East and North Africa, has closed an agreement with several Glovo shareholders that will allow it to gain an extra 39.4% stake in the company. Added to what it has had for years, 44%, would control more than 80% of the home delivery firm based in Catalonia.
The closing of the operation still depends on “usual conditions and regulatory approvals”, such as the approval of the authorities of several countries; but both companies hope to have all the ends tied up in a matter of months, in the second quarter of 2022.
Sum of forces
The German company takes over the extra stake in Glovo in exchange for a share swap in Delivery Hero itself. “The remaining Glovo shareholders, including the new pre-approved shareholders, will be able to adhere to the agreement for a period of time before closing. In exchange for Glovo shares, Delibery Hero will issue its own shares to sellers at a fixed exchange rate that implies a multiple valuation of Glovo’s GMV in line with Delivery Hero’s current trading levels ”, the companies specify in a joint statement.
Will the operation bring changes for the users of the app? For now, Glovo advances that, once the operation is fully closed, it will continue to operate with its brand and platform and will continue to be managed by its current management team, led by its two founders. Both platforms emphasize, yes, that the operation will allow them to “join forces” and reinforce their footprint.
The operation, Reuters agency specifies, would value Glovo’s business at around 2.3 billion euros. Delibery Hero would have also committed to support the development of the Catalan firm with financial support of up to 250 million this year in various tranches. During the capital increase carried out by Glovo last March, the German platform had contributed 229 million, more than half of the operation, which already then increased his weight.
Glovo, an application that connects users, companies and messengers, was founded in 2015 in Barcelona and already operates in 25 countries. Delivery Hero, based in Germany, started as a food delivery service several years earlier, in 2011, and today it has a presence in about 50 countries and is listed on the German Stock Exchange with a capitalization that exceeds 25,000 million euros.