Delivery Hero acquires majority stake in Spanish food delivery app Glovo

(Reuters) – German food delivery group Delivery Hero said on Friday it had signed an agreement to acquire about a 39.4% stake in Spanish delivery app Glovo.

The company currently holds about 43.8% in Glovo shares on a non-diluted basis.

The transaction will value Glovo at 2.3 billion euros on a fully diluted and debt free basis before certain adjustments, the company said.

Delivery Hero also committed to provide a back-stop financing of up to approximately 250 million euros to Glovo in several tranches in the course of 2020, the company added.

Glovo will continue operations with their existing brand and platform under their current management, it said.

(Reporting by Sabahatjahan Contractor in Bengaluru; Editing by Chris Reese)