Delivery Hero Holding has announced the acquisition of Emerging Markets Online Food Delivery Holding brand foodpanda. In exchange for all its shares in foodpanda, Rocket Internet received newly issued shares in Delivery Hero increasing its stake in Delivery Hero to 37.7%.
The transaction strengthens Delivery Hero’s global leadership position in online food ordering and delivery, with the combined group processing over 20 million orders per 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 Delivery Hero’s total addressable market. Furthermore, the combination of the two key companies leads to a significant reduction of complexity at group level for Rocket Internet
“The combination of foodpanda and Delivery Hero, one of our most important companies, further consolidates key markets resulting in significantly improved market positions. Delivery Hero is also acquiring new markets with leading market positions further broadening its geographic footprint”, said Oliver Samwer, Rocket Internet’s CEO. “In addition, the transaction leads to reduced complexity at group level for Rocket Internet.”
“foodpanda has built a fantastic position and service offering in some of the largest food delivery markets globally. We look forward to working with the team to continue creating unparalleled takeaway experiences for our customers around the world”, said Niklas Östberg, Delivery Hero’s CEO.
“I am delighted to join forces with Delivery Hero and be part of a global platform that will help us grow and with which we share a common vision”, said Ralf Wenzel, foodpanda’s CEO.
The transaction is subject to customary closing conditions and is expected to close prior to December 31, 2016.
Rocket Internet builds and invests in Internet companies that take proven online business models to new, fast-growing markets. Rocket Internet focuses on four industry sectors of online and mobile retail and services that make up a significant share of consumer spending: Food & Groceries, Fashion, General Merchandise and Home & Living. Its network of companies operates in a large number of countries around the world with more than 36,000 employees.