IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

Just Eat Takeaway to purchase Grubhub for $7.3B

“I am excited that we can create the world’s largest food delivery business outside China,” says Just Eat Takeaway CEO Jitse Groen

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.

Featured Resources

The state of Salesforce: Future of business

Three articles that look forward into the changing state of Salesforce and the future of business

Free Download

The mighty struggle to migrate SAP to the cloud may be over

A simplified and unified approach to delivering Enterprise Transformation in the cloud

Free Download

The business value of the transformative mainframe

Modernising on the mainframe

Free Download

The Total Economic Impact™ Of IBM FlashSystem

Cost savings and business benefits enabled by FlashSystem

Free Download

Most Popular

Why convenience is the biggest threat to your security
Sponsored

Why convenience is the biggest threat to your security

8 Aug 2022
How to boot Windows 11 in Safe Mode
Microsoft Windows

How to boot Windows 11 in Safe Mode

29 Jul 2022
Microsoft successfully tests emission-free hydrogen fuel cell system for data centres
data centres

Microsoft successfully tests emission-free hydrogen fuel cell system for data centres

29 Jul 2022