German online food-Delivery service, Delivery Hero, announced that it is acquiring the Latin American operations of Glovo, an on-demand delivery start-up, for up to €230 million, including a €60 million performance-based earn-out.

The transaction will cover all of the Latin American countries in which Glovo operates, including Argentina, Peru, Ecuador, Panama, Costa Rica, Honduras, Guatemala and the Dominican Republic. Out of these countries, Delivery Hero is already present in Argentina, Panama and the Dominican Republic, and the newly acquired assets in these markets will be transferred to Delivery Hero at closing.

With the acquisition of Glovo’s operations in Peru, Ecuador, Costa Rica, Honduras and Guatemala, Delivery Hero adds five new countries to its Latin American footprint. Glovo will continue to operate the business in these countries until March 2021.

Delivery Hero currently operates in 40+ countries internationally in Europe, Asia, Latin America and the Middle East and partners with 500,000+ restaurants

Related story: Glovo reports an increase in deliveries and cashless payments on its platform in Kenya since the onset of Covid-19

Founded in 2015 by Oscar Pierre and Sacha Michaud in Barcelona, Spain, Glovo operates in over 650 cities in 22 countries across EEMEA, LATAM and Sub-Saharan Africa. In January 2020, Glovo ended its operations in Turkey, Egypt, Puerto Rico and Uruguay.

However with the sale of the LatAm operations to Delivery Hero, Glovo is now operational in 14 markets, including Morocco, Kenya and Côte d’Ivoire.

Glovo has more than 2.5 million monthly active users, 50,000 active couriers and over 50,000 associated partners worldwide.

Niklas Östberg, CEO and Co-Founder of Delivery Hero, says that “acquiring Glovo’s local operations gives us the opportunity to double down on our efforts to drive innovation, continuously improve customer experience and support local vendors in the region.”

Oscar Pierre, CEO of Glovo, says that “this deal will allow us to strengthen our presence in those markets where we are already very strong, while also allowing us to invest in new markets where we see huge growth potential and opportunity.

This month, Glovo is launching in several new markets, including Moldova, Kyrgyzstan and Uganda, where it thinks it has a chance of becoming a market leader.

The post Delivery Hero acquires Glovo’s LatAm operations for €230 million appeared first on Innovation Village.