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Delivery Hero buys InstaShop to expand in Middle East, North Africa

Credit: REUTERS/Fabrizio Bensch

German online takeaway food group Delivery Hero said on Thursday it is acquiring online grocery service InstaShop after almost doubling its revenues in the first half of 2020.

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BERLIN, Aug 27 (Reuters) - German online takeaway food group Delivery Hero DHER.DE said on Thursday it is acquiring online grocery service InstaShop after almost doubling its revenues in the first half of 2020.

InstaShop, launched in 2015, operates in the United Arab Emirates, Qatar, Bahrain, Egypt and Lebanon and has an annualised gross merchandise volume of $300 million, Delivery Hero said.

It said the Dubai-based firm would continue to operate as an independent brand under the current leadership.

Berlin-based Delivery Hero said its takeover of InstaShop was based on a valuation of $360 million. The initial purchase price was $270 million, and the size of the deferred component to InstaShop's founding team will be dependent on growth and profitability in the future.

Delivery Hero, the newest member of Germany's blue-chip index DAX .GDAXI, said it expects continuous growth in the second half of the year as people order more from home due to coronavirus lockdowns.

Shares in Delivery Hero were down 1.7% in early Frankfurt trade.

(Reporting by Riham Alkousaa; editing by Thomas Seythal and Maria Sheahan)

((Riham.Alkousaa@thomsonreuters.com;))

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