Uber's $1.1bn acquisition of Drizly

By AJ Tomas (University of Chicago) and Demi Akinjide, Saihejpal Ailwadhi, Ben Fobel, Zac greenberg and Will Sergent (University of Bristol)


Overview of the deal

Acquirer: Uber Technologies (NYSE:UBER)

Target: Drizly

Implied Equity Value: Not Disclosed

Total Transaction Size: $1.1 billion

Announcement Date: 2nd February 2021

Expected Close Date: Expected to close in the first half of 2021

Acquirer advisor: Not Disclosed

Target advisor: Not Disclosed

Having agreed on a $1.1 billion cash and stock Drizly takeover, Uber attempts to further diversify its product portfolio. It is expected that Uber would finance 10% of the transaction in cash, with the remainder going towards common stock. Given this, Drizly would become a subsidiary of Uber by complementing its services within the UberEats App, whilst also operating its own app. As a result, this transaction would allow Uber to provide even greater value to consumers with benefits on Drizly.

“Cory and his amazing team have built Drizly into an incredible success story, profitably growing gross bookings more than 300 per cent year-over-year,” said Dara Khosrowshahi, Uber’s chief executive.

Company Details: (Acquirer - Uber)

Uber Technologies, Inc. is a multinational ride-hailing company operating in more than 80 countries worldwide. With 110 million users estimated in 2019, Uber is offering peer-to-peer ridesharing, ride-hailing service, shared electric bikes or scooters, and food delivery service under the name of Uber Eats. Uber Eats currently holds 24% of the US domestic food delivery market.

Founded in: 2009

Co-Founders: Travis Kalanick, Garrett Camp

CEO: Dara Khosrowshahi

Number of employees: 26,900

Market Cap: $112.25bn (as of 16/02/2020)

EV: $112.65bn (as of 16/02/2020)

LTM Revenue: $11.14

LTM EBITDA: -$4.29bn

LTM EV/Revenue:10.11x

LTM EV/EBITDA: $-26.27