Delivery Hero, a Berlin-based local delivery platform, has entered into an agreement to acquire the Latin American operations of Glovo, a Span-based on-demand delivery startup.
The deal is valued at up to 230 million euros ($270 million), and includes a 60-million-euro performance-based earn-out, and covers all the Latin American countries in which Glovo operates: Argentina, Costa Rica, Dominican Republic, Ecuador, Guatemala, Honduras, Panama and Peru.
Out of those 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, the latter company said in a statement. With the acquisition of Glovo’s operations in Peru, Ecuador, Costa Rica, Honduras and Guatemala, Delivery Hero adds five new countries to its Latin American footprint. Glovo will continue to operate the business in these countries until March 2021.
“Latin America is a region with exceptional growth potential for online delivery. Acquiring Glovo’s local operations gives us the opportunity to double down on our efforts to drive innovation, continuously improve customer experience and support local vendors in the region,” Niklas Östberg, CEO and co-founder of Delivery Hero, said.
“We have been working closely with Glovo for many years, and are proud to incorporate their Latin American services into our global network,” he added.
For his part, Oscar Pierre, CEO of Glovo, said: “We feel that it’s important to focus on key markets where we can build a long-term sustainable business and continue to provide our unique multi-category offering to our customers. This deal will allow us to strengthen our presence in those markets where we are already very strong, while also allowing us to invest in new markets where we see huge growth potential and opportunity.”
“We truly believe that Delivery Hero is the best possible partner to take the business we’ve built in Latin America to the next level. They have everything it takes to go on and become the leading player in the region.”
Delivery Hero has a strong presence in 39 out of 44 countries in which it is operating across Europe, Latin America, Asia, the Middle East and North Africa, and the company also operates its own delivery service primarily in over 600 cities around the globe. Headquartered in Berlin, the company group has more than 27,000 employees, and is listed on the Frankfurt stock exchange and became part of the leading index DAX (Deutscher Aktienindex) in 2020.
EY Peru acted as regional counsel in Latin America to Delivery Hero with a team led by partner Fernando Tori and manager Ingrid Zevallos.
Spanish law firm Cuatrecasas also advised Delivery Hero, with a team led by Madrid-based partner Diana Rivera, with of counsel Alejandro Negro, partner Jorge Aranaz, associates Ana Laso, Adaya Esteban and Lucas Peiro de la Rocha, and partner Óscar Trelles and associate Victor Pedro León Chiri in Cuatrecasas' Lima office.
Law firm Ferrere collaborated with Cuatrecasas with regards to the acquisition of Glovo in Ecuador, while law firm Arias also participated as counsel to Delivery Hero on its acquisition of Glovo's business in Costa Rica, Guatemala and Honduras