Glovo, the everything on-demand delivery platform operating in Kenya, Ghana and Egypt has sold its Latin American operations to Delivery Hero for EUR 230 million ($272 million).
The transaction will cover all of the Latin American countries in which Glovo operates, including Argentina, Peru, Ecuador, Panama, Costa Rica, Honduras, Guatemala and the Dominican Republic. Out of these 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.
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.
In a statement, Niklas Östberg, CEO and Co-Founder of Delivery Hero, said, “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. We have been working closely with Glovo for many years, and are proud to incorporate their Latin American services into our global network.”
Delivery Hero says the deal is worth up to EUR 230 million, including a EUR 60 million performance-based earn-out. The transaction is expected to close within the next few weeks, subject to fulfillment of the conditions precedent and relevant regulatory approvals.
Oscar Pierre, CEO of Glovo, said the deal allows Glovo to focus on its key markets where it can build a long-term sustainable business.
“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,” said Pierre. “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.”
Founded in Barcelona, Glovo operates in over 650 cities in 22 countries across EEMEA, LATAM and Sub-Saharan Africa and has more than 2.5 million monthly active users, 50,000 active couriers and over 50,000 associated partners worldwide.
