GERMAN online takeaway food group Delivery Hero said today it is acquiring online grocery service InstaShop after almost doubling its revenues in the first half of 2020.
InstaShop, launched in 2015, operates in the United Arab Emirates, Qatar, Bahrain, Egypt and Lebanon and has an annualised gross merchandise volume of US$300 mil (RM1.25 bil), Delivery Hero said.
It said the Dubai-based firm would continue to operate as an independent brand under the current leadership.
Berlin-based Delivery Hero said its takeover of InstaShop was based on a valuation of US$360 mil.
The initial purchase price was US$270 mil, and the size of the deferred component to InstaShop’s founding team will be dependent on growth and profitability in the future.
Delivery Hero, the newest member of Germany’s blue-chip index DAX, said it expects continuous growth in the second half of the year as people order more from home due to coronavirus lockdowns.
Shares in Delivery Hero were down 1.7% in early Frankfurt trade. – Aug 27, 2020, Reuters
