Delivery Hero, the Berlin-based online food delivery platform, is set to acquire an additional 39.4% stake in Glovo, a Spanish food delivery platform. This is in addition to the 44% interest it already holds on an undiluted basis, making it the majority shareholder in the company.

The transaction is expected to occur in the second quarter of 2022, subject to certain conditions and regulatory approvals, including merger control clearance.

Delivery Hero plans to issue its own shares (~7.9 million) in exchange for Glovo shares at a fixed exchange ratio and an implied GMV multiple for Glovo aligned to Delivery Hero’s current trading levels. Glovo will continue to operate under the current platform, brand, and management structure. 

Glovo holds leading positions in 16 out of its 25 markets, having recorded an 80% organic growth rate in 2021 and a run rate of ~EUR 3 billion in GTV. The transaction is expected to complement the companies’ geographical footprint and delivery expertise. It is also expected to improve efficiencies and accelerate product development through shared technologies.