Glovo to sell Latin American operations to Delivery Hero
London, UK, September 16, 2020 — Glovo, the on-demand delivery start-up, today announced that Delivery Hero will be acquiring its operations in Latin America for up to €230 million, including a €60 million performance-based earn-out. The transaction is expected to be closed within the next few weeks, subject to the fulfilment of the conditions precedent and relevant regulatory approvals.
The deal will cover all eight of the countries in Latin America in which Glovo operates — Argentina, Peru, Ecuador, Panama, Costa Rica, Honduras, Guatemala and the Dominican Republic. Glovo will migrate certain assets in Argentina, Panama and the Dominican Republic, notably its partners and customers, to Delivery Hero at closing. In the other five countries, Glovo will maintain its branding and continue to operate those businesses until March 2021.
Following the sale of its operations in Latin America, Glovo will look to strengthen its presence in its core markets and will continue to expand into new markets as it increases its footprint across South West Europe and EEMEA. This month will see the opening of operations in new markets including Moldova, Kyrgyzstan and Uganda. The company’s aim is to create profitable market leadership positions in the regions in which it operates, with many of its countries already operationally profitable.
Separately, Glovo has also recently secured a convertible loan of €120 million issued by Lugard Road Capital and Luxor Capital and the company will now concentrate its efforts on investing in its core markets and consolidating its leadership positions.
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.”
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.”