(Bloomberg) -- German delivery giant Delivery Hero SE has agreed to acquire a majority stake in Spanish startup Glovo, the company said in a statement Friday.
The deal will value Glovo, Spain's largest online delivery platform, at 2.3 billion euros ($2.6 billion). Glovo was founded in 2015 and operates in 25 countries in Europe, Central Asia and South Africa. It brought in 151 million euros in revenue ($172 million) in the most recent quarter.
In the deal, Delivery Hero will acquire 39.4% of the startup. The German company said it first bought a stake in Glovo in 2018 and currently holds approximately 43.8% of the shares on a non-diluted basis. Delivery Hero also committed to providing back-stop financing of up to about 250 million euro in several tranches over the course of 2022.
Glovo raised 450 million euros ($531 million) earlier this year, and made several acquisitions, agreeing to buy two grocery delivery companies -- Spain-based Lola Market and Portugal-focused Mercadao -- and Delivery Hero's operations in eastern Europe.
The year 2021 was extremely competitive for food delivery in Europe. Delivery Hero's stock fell about 20% for the year.
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