Just Eat Takeaway Joins Forces with Prosus in €4.1 Billion Deal – What’s Behind the Acquisition?
A New Era for Just Eat Takeaway – In a significant move for the food delivery industry, Just Eat Takeaway.com has been acquired by Prosus, a South African internet investor, in a €4.1 billion deal. This marks the culmination of a long-standing pursuit, with Prosus, the investor behind Delivery Hero, securing the company in an all-cash agreement. The deal comes two months after Just Eat Takeaway delisted its shares from the London Stock Exchange, reflecting a shift in its market strategy.
The Deal Breakdown
Under the terms of the acquisition, Prosus will pay €20.30 per share for Just Eat’s Amsterdam-listed shares, providing a 22% premium compared to its three-month high. However, this valuation is a far cry from the company’s 2020 peak, when its share price surged above €100. The acquisition comes after years of challenges for Just Eat, including bad investments and a tough post-pandemic period.
Just Eat Takeaway’s Struggles and Prosus’s Vision
The acquisition by Prosus ends a rough period for Just Eat Takeaway. The company, formed in 2020 from a merger between Britain’s Just Eat and Dutch rival Takeaway.com, initially soared during the COVID-19 pandemic, as food delivery demand spiked. However, this growth was unsustainable, and the company faced significant hurdles, most notably a disastrous acquisition of GrubHub in the U.S. at the height of the pandemic. Just Eat announced in November that it would sell GrubHub for $650 million, significantly below the original purchase price of $7.3 billion.
Despite efforts to restructure, including delisting from the London Stock Exchange to reduce costs, Just Eat struggled to regain momentum. The company’s valuation, once soaring to £15 billion and a part of the FTSE 100 index, had dwindled in recent years due to poor investment decisions and market shifts.
Prosus’s Strategy and Long-Term Growth
Fabricio Bloisi, CEO of Prosus, expressed excitement over the acquisition, stating that it provided an opportunity to create a “European tech champion.” Bloisi pointed to Prosus’s extensive food delivery portfolio outside of Europe and a proven track record of profitable growth through investment. The company already holds significant stakes in major food delivery platforms, including Delivery Hero, Meituan in China, and Swiggy in India. Prosus’s previous investments in companies like iFood in Brazil, which saw impressive growth through the use of artificial intelligence, offer a blueprint for its plans to revamp Just Eat Takeaway.
With plans to replicate the success of iFood, Prosus intends to leverage its technological expertise to improve operations at Just Eat Takeaway.com. The company claims that Just Eat’s operations are profitable and have substantial growth potential, particularly in Germany, the Netherlands, and the UK, where the company maintains a strong market presence.
The Future of Just Eat Takeaway.com Under Prosus Ownership
The merger positions Just Eat Takeaway as a more European-centric business with a focus on fast growth and profitability. Jitse Groen, CEO of Just Eat Takeaway, emphasized the company’s shift towards a faster-growing, more profitable business model under Prosus’s guidance. Groen added that the extensive resources and support from Prosus would help accelerate Just Eat’s investments and growth in various sectors, including food delivery, groceries, fintech, and other adjacent markets.
While the deal represents a major shift in the food delivery sector, it also highlights the ongoing trend of consolidation in the industry. As competition increases, the acquisition of Just Eat Takeaway by Prosus may pave the way for further changes within the European food delivery landscape, as Prosus aims to create a dominant force in the sector.
A New Era for Just Eat Takeaway.com
In conclusion, the acquisition of Just Eat Takeaway.com by Prosus for €4.1 billion marks a pivotal moment in the company’s history. While Just Eat’s previous efforts to grow in a post-pandemic world were fraught with challenges, the support from Prosus’s vast resources could provide the fuel needed to accelerate its growth and drive profitability. As Prosus continues to expand its global food delivery portfolio, this deal could reshape the future of food delivery platforms across Europe and beyond.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
Leave a comment