Prosus, the Dutch tech investor, has announced the acquisition of Just Eat Takeaway, the parent company of Thuisbezorgd, for €4.1 billion, marking one of its largest investments to date. The deal, which values Just Eat Takeaway at €20.30 per share, culminates with the backing of the company’s board and supervisory board, indicating broad support for this significant move.
This acquisition includes a notable premium of 63 percent over the company's last closing share price on Friday, demonstrating Prosus's bullish outlook on the food delivery market. Jitse Groen, the founder and CEO of Just Eat, will continue leading the company post-acquisition, reaffirming the company's stability and strategic direction.
Announcement details revealed this major deal amid Just Eat Takeaway's recent struggles, characterized by declining order volumes due to fierce competition and changing consumer behaviors. Groen expressed optimism about the acquisition, stating, “Prosus supports our strategic plans and its considerable resources will help accelerate our investments and growth in the area of food, groceries, fintech, and other adjacent sectors.”
Just Eat Takeaway, which has seen ups and downs since its inception on Jitse Groen's home attic, has enjoyed significant growth, especially during the pandemic, when demand spiked by nearly 40 percent. Nonetheless, the company faced hurdles, particularly following its acquisition of Grubhub, which it bought for $7.3 billion but later sold at significant losses.
The integration of Just Eat Takeaway under the Prosus umbrella positions the company strategically to capitalize on Prosus's experience and existing investment portfolio, which includes stakes in several leading food delivery companies globally. This positions Just Eat Takeaway to not only consolidate its operations within Europe but also expand its influence internationally, tapping markets well beyond its current reach.
On the day following the announcement, Prosus's stock dipped by over 6 percent, reflective of market volatility and investor reactions to the acquisition; meanwhile, shares of Just Eat soared over 60 percent. The shareholders are expected to benefit from the agreement, receiving shares corresponding to the acquisition price stipulated.
Sources from within the market suggest this acquisition is not merely about consolidation; it’s about fostering innovation within the food delivery sector, particularly through the incorporation of artificial intelligence to refine user experiences. Prosus reiterated its intent to leverage technological advancements, ensuring new growth avenues for Just Eat Takeaway.
While the deal hinges on approval by regulators, expectations are high for its completion by the end of the year, with analysts predicting it to bolster competition within the food delivery market. Just Eat Takeaway, rooted firmly in Europe yet eyeing global expansion, is set to benefit from Prosus's commitment to maintaining the brand's identity and operational core.
The acquisition of Just Eat Takeaway by Prosus not only reinforces the strategic collaboration between technology investment and traditional food delivery services but also poses questions about the future of Just Eat’s operations, especially concerning its American ventures. How this merger will reshape competition within the sector remains to be seen as industry stakeholders watch closely.