Delivery Hero’s €2.3bn Acquisition of Glovo

By Yair Trachtenberg, Ismael Fathy Martínez, Nikita Bezverkhniy, Markus Walter, and Julia Donato (ESADE), Luc Roberts, Ben Schwarzmann, and Priyanshu Srivastava (University of Warwick)


Overview of the deal

Acquirer: Delivery Hero SE

Target: Glovoapp23, S.L.

Total Transaction Size: €774 million (as of close 30/12/2021)

Implied Equity Value: €2.3 billion

Closed date: Ongoing

Acquirer advisor: JP Morgan

Target advisor: Morgan Stanley

German online food delivery service, Delivery Hero, which currently own a 43.8 percent stake in Barcelona based unicorn Glovo, has now signed an agreement for an additional 39.4 percent stake. The transaction values Glovo at €2.3 billion on a fully diluted and debt-free basis and will make Delivery Hero the largest shareholder of the company. The deal was driven by a complementary geographical footprint and it is expected that the two firms will intend to further improve efficiencies, yielding large cost savings, by utilising both their respective technologies.

“I believe our potential is untapped, and I’m happy to have found a partner that matches our ambition, culture and will keep supporting this adventure we’ve embarked on to drive innovation further, strengthen our multi-category offering and create additional value for all our stakeholders, and the industry.” - Oscar Pierre, CEO of Glovoapp23, S.L.

Company Details (Acquirer - Delivery Hero SE)

Delivery Hero is a German multinational specialising in online food-service delivery. It is the leading player in the category of quick commerce, focused on delivering small batch orders in under an hour. The company’s portfolio comprises Foodpanda, PedidosYa and Click Delivery among many other industry-related players.

Founded in 2011, headquartered in Berlin, Germany

CEO: Niklas Östberg

Number of employees: 43,838

Market Cap: €16.36 billion (as of 04/02/2022)

EV: €17.64 billion

LTM Revenue: €3.9 billion

LTM EBITDA: (€988 million)

LTM EV/Revenue: 4.44x

LTM EV/EBITDA: -12.23x

Company Details (Target - Glovoapp23, S.L.)

Glovoapp 23, S.L. is a mobile-based application that provides services (inclusive of pickups and deliveries) to e-commerce stores, restaurants and other shops. The Spanish firm’s strategic partnership with Carrefour has allowed it to explore other international markets including Argentina, France and Italy.

Founded in 2015, headquartered in Barcelona, Spain

CEO: Oscar Pierre

Number of employees: 1,900

FY2020 Revenue: €140.5 million

Projections and Assumptions

Short-term consequences

The acquisition comes after Delivery Hero’s previous €51 million investment in Glovo in May 2018, where it led the company’s Series C funding. Glovo has since established itself as a leader in 16 of the 25 countries it operates in, including its core market in Spain, the largest by gross transaction volume. The geographical overlap between the two companies is particularly complimentary, with the acquisition increasing Delivery Hero’s reach by 700 million people, to a total population of 2.2 billion. After closing, Glovo’s management team is expected to remain, and the company will continue to operate under its current platform and brand.

Delivery Hero’s acquisition of the additional 39.4 percent stake will be paid in stock through the issuance of 7.9 million