Berlin, Frankfort
With the takeover, Getir is expanding its business primarily in Germany and Great Britain.
(Photo: Bloomberg)
After tough and protracted negotiations, the Turkish fast delivery service pioneer Getir takes over the Berlin competitor Gorillas and thus significantly expands its range in Germany and Great Britain. The deal shows that Getir is driving consolidation in the sector, the Istanbul-based company said on Friday.
This is the first mega takeover in the industry, which is still very young in Germany and was only launched during the corona pandemic with billions of euros in venture capital.
Getir did not provide any information on the purchase price or the company valuation. According to financial sources, the combined company is worth $7 billion. In their most recent funding rounds, Gorillas and Getir together were valued at twice that amount.
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Neither Gorillas nor Flink are profitable yet
This crash also reflects the changed view of companies whose business model consists of bringing groceries to the front door by bicycle courier in the shortest possible time. So far, none of the providers, including Flink in Germany, has shown that it can be profitable. Flink filed for bankruptcy for its Austrian subsidiary just this week.
According to the plans, Gorillas should be valued at $940 million in the deal. The owners of the Berlin company around founder Kagan Sümer should receive new Getir shares worth 840 million dollars – 40 million of them for the management. In total, the gorilla owners would receive a 12 percent stake in Getir and an additional cash payment of $100 million.
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It is also currently being discussed that the merged company will receive fresh money from the investor Mubadala, the sovereign wealth fund from Abu Dhabi. Then the valuation could rise to ten billion dollars.
Nor was any information given as to whether, as a result of the acquisition, employees would have to leave the company – as assumed by many. Both companies have laid off hundreds of employees this year. In many places there should now be overlaps. The Berlin-based food delivery service Delivery Hero is also involved in gorillas.
More: Will these 36 billion German start-ups get through the crisis?