German food delivery company Delivery Hero is set to become the majority shareholder in Spanish delivery service Glovo later this year after signing an agreement to purchase an additional 39.4% stake in the company last week.
Since the pandemic began in 2020, Delivery Hero has jumped at the opportunity to invest in other delivery services as the sector has boomed, to say the least — after all, we know that you know just how much you've been ordering in since then! Delivery Hero (which trades on the Frankfurt Stock Exchange) currently operates in around 50 countries across Europe, Latin America, Asia, the Middle East, and North Africa. It currently owns a 44% stake in Glovo and is the parent company to the MENA region’s Talabat.
Under the terms of the agreement, Delivery Hero will be acquiring the additional shares of Glovo in exchange for some of its own shares. The deal is expected to close sometime in the second quarter of 2022.
Why it matters
Glovo is a valuable asset in Delivery Hero's portfolio. The company experienced an organic growth rate of 80% last year and pulled in revenues of EUR 800m. Glovo will also give Delivery Hero exposure to additional markets in Central Asia and Africa — everyone's gotta eat!
