Delivery

JustEat Takeaway to buy Grubhub in $7.3B stock deal

Provided

June 10, 2020

JustEat Takeaway.com NV agreed to buy Grubhub Inc. in an all stock transaction valued at $7.3 billion, creating the world's largest food delivery platform outside of China. 

The deal follows the collapse of a high-profile overture from ride sharing and food delivery rival Uber Technologies Inc. in May, however, those negotiations fell apart amid intensive blowback from U.S. lawmakers and rejection of the terms by Grubhub.

The combined company will have more than 70 million combined active customers and a significant presence in four international markets, including the U.S., Germany, the Netherlands and U.K., as well as restaurant partnerships in 25 countries.

Grubhub founder and CEO Matt Maloney will lead the combined businesses in North America and the combined firm will be based in Amsterdam, with U.S. headquarters in Chicago, the home of Grubhub. 

"When Grubhub and Seamless were founded, the online takeout industry didn't exist in the U.S.," Matt Maloney, founder and CEO of Grubhub, said in a joint release. "My vision was to transform the delivery and pickup ordering experience."

Maloney said he's known Just Eat Takeaway CEO Jitse Groen since 2007 and said the companies have similar growth stories.

"We share a focus on a hybrid model that places extra value on volume at independent restaurants, driving profitable growth," he added. "Supported by JustEat Takeaway.com, we intend to accelerate our mission to be the fastest, best and most rewarding way to order food from your favorite local restaurants in North America and around the world."

JustEat Takeaway will pay about $75.15 for each Grubhub share, in the form of paying one American Depository Receipt representing 0.6710 Just Eat Takeaway shares for each Grubhub share, based on the company's closing share price on June 9.

TheGrubhub portfolio includes Grubhub, Seamless, LevelUp, AllMenus and MenuPages. The company had 23 million customers in the U.S. in 2019, revenue of $1.3 billion and 180 million food orders. 

Just Eat Takeaway also owns SkiptheDishes, a major food delivery platform in Canada.