Summary
Uber Technologies, Inc. (UBER) has announced a significant strategic move with the signing of a Business Combination Agreement (BCA) to acquire Delivery Hero SE for €41.50 per share, in an all-cash transaction valued at approximately €14.2 billion. This acquisition, expected to close in the second half of 2027, aims to integrate Delivery Hero as a majority-owned indirect subsidiary, significantly expanding Uber's global reach and operational footprint in the food delivery sector. The transaction is subject to customary closing conditions, including regulatory approvals and a minimum tender offer threshold of 50% of Delivery Hero's shares. Uber plans to finance the acquisition primarily through existing cash reserves and debt financing. To support this, Uber has also secured a €14.2 billion senior unsecured bridge credit facility, which will mature 364 days after the closing date and is intended to cover the offer costs, related transaction expenses, and potential refinancing needs of Delivery Hero.
Key Highlights
- 1Uber enters into a definitive agreement to acquire Delivery Hero SE for €41.50 per share in an all-cash offer.
- 2The total transaction value for the acquisition is approximately €14.2 billion.
- 3The acquisition is expected to close in the second half of 2027, subject to regulatory approvals and tender offer conditions.
- 4Uber has secured a €14.2 billion bridge credit facility to finance the transaction and related costs.
- 5Delivery Hero's management and supervisory boards have unanimously approved the agreement and will recommend shareholders tender their shares.
- 6Customary covenants regarding business operations and non-solicitation of competing offers are included in the agreement.
- 7Termination fees are stipulated, with Delivery Hero potentially paying EUR 200 million and Uber potentially paying EUR 700 million under specific circumstances.