Takeaway.com’s £6.2 Billion Merger with Just Eat

By Niklaus Straussberger, Helene Kapelari, Noah Al-Hachich (Vienna University of Economics and Business), Charlie Solnik, Ryan Tenerowicz, Ory Ratoviz (California Polytechnic State University)


Overview of the deal

Acquirer: Takeaway.com N.V.

Target: Just Eat PLC

Estimated Value: £6.2bn

Announcement Date: 07/29/2019 (approved on 4/23/2020)

Acquirer Advisors: BofA Merrill Lynch, Lazard, Gleacher Shacklock

Target Advisors: Goldman Sachs International, UBS, Oakley Advisory

The recently approved merger between two food delivery firms, Just Eat (British based) and Takeaway.com (Dutch based), creates one of the world's largest food delivery companies in an increasingly consolidated industry. Takeaway.com had to fight off rival bids from Prosus, the tech investment division of the South African internet group Naspers, by paying a 20% premium on its all-stock attempt. The merged company will be a significant competitor to Uber's food delivery business, which waits for approval to acquire Grubhub, and become a dominating force in the industry.

Stay-at-home orders during the Covid-19 pandemic have prompted the food delivery industry to experience unprecedented growth rates, which in turn stimulated the appetite for takeovers. Advocates of the deal hope that even as lockdown measures are gradually eased, the shift in consumer behaviour persists. This would enable sustained industry growth.

As a result of fierce competition, market players operate on the verge of profitability and require large infusions of cash to survive. The newly formed company raised about £630 million in outside funding by issuing shares and convertible bonds to withstand the margin compression they are facing.

“On August 5 2019, Just Eat PLC and Takeaway.com announced a recommended all-share combination, which will create one of the largest food delivery companies in the world, with scale, strategic vision, industry-leading capabilities, leading positions in attractive markets and a diversified geographic presence.”
Just Eat Q3 2019 Update

Company Details (Takeaway.com)

Takeaway.com is a food delivery company operating globally. It focuses on connecting 44,000 restaurants with consumers via an online hybrid marketplace. Customers order using the stationery online portal or mobile app, whereupon suppliers of Takeaway.com deliver the meal in exchange for a commission from the restaurant. Founded in 2000 and based in Amsterdam, it now operates in multiple European countries, as well as in Vietnam and Israel. Among others, Takeaway.com owns Delivery Hero Germany.

Founded in: 2000

Headquartered in: Amsterdam, Netherlands

CEO: Jitse Groen

Number of Employees: 2,672

Market Cap: £4,013m

EV: £4,187m

LTM Revenue: £364.92m

LTM EBITDA: £8.27m

LTM EV/Revenue: 11.47x

LTM EV/EBITDA: 506.29x