- Delivery Hero strengthens its position in Latin America, adding Peru, Ecuador, Costa Rica, Honduras and Guatemala to its current footprint;
- The transaction is expected to close within the next few weeks.
Berlin-based Delivery Hero is acquiring Spain’s Glovo operations in Latin America for $272 million (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.
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The acquisition 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.
On a blog post, Delivery Hero said that 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, though.
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Niklas Östberg, CEO and Co-Founder of Delivery Hero, stated that 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.”