In a slew of events since past couple of days, it has been confirmed that Just Eat Takeaway and US-based food delivery app Grubhub have entered into a definitive agreement. Now, Just Eat Takeaway is to acquire 100% of the shares of Grubhub in an all-stock transaction — a €6.5 billion deal — to create the world’s largest online food delivery company outside of China with customers in 25 countries.
Just yesterday, Just Eat Takeaway.com confirmed the tech media through a press release that the company was in advanced talks to buy Grubhub in an all-stock deal. Initially, tech giant Uber was likely in discussions with Grubhub about a deal.
The Transaction represents Netherlands-based Just Eat Takeaway.com’s entry into online food delivery in the US and builds on the strategic rationale for its recent merger with Just Eat. The Combined Group will be built around four of the world’s largest profit pools in online food delivery including US, UK, the Netherlands and Germany, increasing the Combined Group’s ability to deploy capital and resources to strengthen its competitive positions in all its markets.
Under the terms of the Transaction, Grubhub shareholders are expected to own ADRs representing approximately 30.0% of the Combined Group (on a fully diluted basis). On completion, Matt Maloney, CEO and founder of Grubhub, will join the Just Eat Takeaway.com Management Board and will lead the Combined Group’s businesses across North America and two current Grubhub Directors will join the Just Eat Takeaway.com Supervisory Board.
The deal comes less than six months after Takeaway.com and London-based Just Eat merger.
Jitse Groen, CEO and founder of Just Eat Takeaway.com, said: “Matt and I are the two remaining food delivery veterans in the sector, having started our respective businesses at the turn of the century, albeit on two different continents. Both of us have a firm belief that only businesses with high-quality and profitable growth will sustain in our sector. I am excited that we can create the world’s largest food delivery business outside China. We look forward to welcoming Matt and his team to our company and working with them in the future.”
Matt Maloney, CEO and founder of Grubhub, commented: “When Grubhub and Seamless were founded, the online takeout industry didn’t exist in the U.S. My vision was to transform the delivery and pick-up ordering experience. Like so many other entrepreneurs, we started modestly – restaurant by restaurant in our Chicago neighbourhood. Today, Grubhub is a leader across North America. I’ve known Jitse since 2007 and his story is much like mine. Combining the companies that started it all will mean that two trailblazing start-ups have become a clear global leader. We share a focus on a hybrid model that places extra value on volume at independent restaurants, driving profitable growth. Supported by Just Eat Takeaway.com, we intend to accelerate our mission to be the fastest, best and most rewarding way to order food from your favourite local restaurants in North America and around the world. We could not be more excited.”
The Combined Group will be headquartered and domiciled in Amsterdam, the Netherlands, with its North American headquarters in Chicago and a significant presence in the UK.
Main image credit: Koshiro K/Shutterstock
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