Delivery Hero to acquire foodpanda
By Digital News Asia December 10, 2016
- Rocket Internet shareholdings in Delivery Hero increased to 37.7% post acquisition
- Transaction to significantly reduce complexity at group level
ROCKET Internet SE announced that Delivery Hero Holding GmbH is acquiring Emerging Markets Online Food Delivery Holding, or also known as foodpanda.
Rocket Internet, which backs both Delivery Hero and foodpanda, will receive newly issued Delivery Hero shares in exchange for all its shares in foodpanda.
Post acquisition, Rocket Internet will see its shareholdings in Delivery Hero increased to 37.7%. The acquisition is expected to be completed end of this year.
According to Rocket Internet in a statement, the transaction strengthens Delivery Hero's global leadership position in online food ordering and delivery, with the combined group processing over 20 million orders a month across 47 countries. Foodpanda operates in total in 22 countries with market leading positions in 17 of them.
The acquisition of foodpanda will enable Delivery Hero to consolidate its market leadership position in the Middle East and adds 20 new countries in Eastern Europe, MENA and Asia to Delivery Hero's platform increasing the size of its total addressable market.
The combination of both companies will also result in significant reduction of complexity at group level for Rocket Internet, it said.
"The combination of foodpanda and Delivery Hero, one of our most important companies, further consolidates key markets resulting in significantly improved market position. Delivery Hero is also acquiring new markets with leading market positions further broadening its geographic footprint," said Oliver Samwer (pic), Rocket Internet chief executive officer.
"In addition, the transaction leads to reduced complexity at group level for Rocket Internet."
According to data compiled by Bloomberg, Delivery Hero and foodpanda have raised more than US$1.5 billion (RM6.63 billion) combined. Besides Rocket Internet, their backers include Goldman Sachs and Insight Venture Partners.