Just Eat Takeaway announced on Wednesday it has agreed to purchase Grubhub for $7.3 billion. The deal would give Just Eat Takeaway a foothold in the U.S. while also creating the largest online food delivery service outside of China. The companies expect to complete the purchase in the first quarter of 2021. Upon completion of the deal, CEO and founder of Grubhub, Matt Maloney, will join the Just Eat Takeaway management board, leading the combined businesses across North America.
Grubhub and Just Eat Takeaway plan to combine forces in an all-stock deal. Per the key terms of the deal, Grubhub shareholders will receive 0.6710 Just Eat Takeaway ordinary shares in exchange for each Grubhub share, representing an implied value of $75.15 for each Grubhub share. This gives Grubhub a total equity consideration of $7.3 billion on a fully diluted basis.
While Maloney will lead the combined group’s businesses across North America, Jitse Groen, CEO and founder of Just Eat Takeaway, will lead the combined business globally. Additionally, Grubhub’s two current directors will join the Just Eat Takeaway supervisory board.
“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,” Groen shared in a statement. “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.”
“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 neighborhood. Today, Grubhub is a leader across North America,” Maloney added.
According to Maloney, combining the companies “will mean that two trailblazing start-ups have become a clear global leader.” Maloney continued, explaining the companies 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.”
Grubhub was previously in talks to be purchased by Uber. However, sources told CNBC’s Peter Faber Uber was preparing to pull out of the deal amid antitrust concerns. While Uber hasn’t commented on the specifics of Grubhub’s deal with Just Eat Takeaway, Uber said in a statement that the food delivery industry would need to consolidate to reach its full potential. “That doesn’t mean we are interested in doing any deal, at any price, with any player,” the statement added.
