Uber Technologies has struck a deal to acquire Delivery Hero, a food delivery company based in Germany, in a transaction valued at $14.8 billion. This acquisition will significantly bolster Uber’s reach, extending its operations across 50 international markets.
The terms of the agreement stipulate that Uber will pay €41.50, equivalent to $47.60, per share for the core global businesses of Delivery Hero. Additionally, the deal encompasses the acquisition of shares from major investor Prosus.
As a component of this transaction, SSW Partners, an investment firm, is set to acquire operations in 14 specific markets for around $1.6 billion. These markets include Austria, Norway, Spain, and Sweden, where SSW intends to sell the businesses separately.
The acquisition occurs as the global food-delivery sector is undergoing substantial consolidation following a period of rapid growth spurred by the Covid-19 pandemic. To strengthen their international presence amid increasing competition, major companies in the industry have been actively pursuing mergers and acquisitions.
In recent years, Uber has explored various strategies for expanding overseas, while its competitors have also been actively engaged in the sector. Meanwhile, Delivery Hero initiated a strategic review in response to investor pressure for restructuring and further asset sales. This acquisition is set to considerably enhance Uber’s position in the global food-delivery market.