The value of the transaction reaches 230 million euros, including a profit of 60 million euros based on performance. The transaction is expected to close in the next few weeks.
Delivery Hero , the local delivery platform, today announced its agreement with Glovo to acquire its operations in Latin America. The value of the transaction reaches230 million euros, including a profit of 60 million euros based on performance. The transaction is expected to close in the next few weeks. It will be subject to compliance with the preceding conditions and the pertinent regulatory approvals.
The transaction will cover all Latin American countries in which Glovo operates , including Argentina, Peru, Ecuador, Panama, Costa Rica, Honduras, Guatemala and the Dominican Republic. Outside of these countries, Delivery Hero is already present in Argentina, Panama and the Dominican Republic, and the newly acquired assets in these markets will be transferred to Delivery Hero at closing. Thus, Delivery Hero adds five new countries to its presence in Latin America. Glovo will continue to operate the business in these countries until March 2021.
Niklas Östberg, CEO and co-founder of Delivery Hero , said: “Latin America is a region with exceptional growth potential for online delivery. The acquisition of Glovo’s local operations provides us with the opportunity to redouble our efforts to drive innovation, continually improve the customer experience, and support local suppliers in the region. We have worked closely with Glovo for many years and we are proud to add their services to our global network. “
For his part, Oscar Pierre, CEO of Glovo , said: “We believe it is important to focus on key markets where we can build a long-term sustainable business. This agreement will allow us to strengthen our presence in those markets where we are already very strong. At the same time, it will allow us to invest in new markets where we see great potential for growth and opportunities. 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. They have everything it takes to move forward and become the leader of the region. “