Ride-hailing giant Uber Technologies Inc. (NYSE:UBER) has reached an agreement to acquire German food delivery platform Delivery Hero SE in a deal worth $14.8 billion.
Uber to Pay Over $47 Per Share
On Thursday, the company released an official statement, confirming that it will pay €41.5 per share ($47.61) for the agreement between the companies.
The deal would see Delivery Hero selling its Turkish food delivery platform Yemeksepeti as well as foodora in markets like Austria and more to SSW Partners, a New York-based investment firm, while other businesses are also being sold to the same firm.
“SSW will acquire Delivery Hero’s businesses in a total of 14 markets, particularly where Uber Eats and Delivery Hero already overlap,” the statement said, in a deal worth approximately $1.6 billion.
“Uber will not acquire control over the businesses transferred to SSW, and SSW will independently lead the process to find strategic partners,” the company said.
Dara Khosrowshahi Weighs In
“Delivery Hero’s talented team has built an extraordinary business, with beloved local brands and leading positions across many of the world’s fastest-growing delivery markets," Dara Khosrowshahi, the CEO of Uber, said in the statement.
He added that the deal would let Uber “double the number of markets” where Uber offers both “mobility and delivery services.”
Nicklas Ortberg, the CEO of Delivery Hero, said that the company was “excited” about the opportunity. Uber also said that it will be making no changes to the food delivery platform’s workforce at its Germany HQ until 2029 and has committed a nearly $2.3 billion investment into Germany over the next five years.
Uber had acquired an additional stake in the company earlier this year, while Delivery Hero had confirmed in May that it received a full takeover offer from the ride-hailing giant.
Uber had paused its plans to roll out operations in five European markets that also had Delivery Hero in a bid to curb antitrust scrutiny, but the companies overlap in markets like Poland, Portugal, Spain and Sweden, a Financial Times report on Wednesday said.
According to Benzinga Edge Rankings, Uber offers excellent Growth, but fails to provide a favorable price trend in the Short, Medium and Long term.
Price Action: Uber Technologies shares were up 0.04% to $72.70 during overnight trading on Wednesday.
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