Prosus to acquire remaining stake in iFood from Just Eat

Rhea-AI Summary

Prosus announced the acquisition of the remaining 33.3% stake in iFood from Just Eat Holding Limited for €1.5bn in cash, plus up to €300m contingent consideration. This acquisition will grant Prosus and Movile full ownership of iFood, an industry leader in Brazil's food delivery sector. iFood delivers around 70 million orders monthly, serving 330,000 restaurant partners and 200,000 delivery partners. The acquisition reflects Prosus's confidence in iFood's growth potential and its commitment to expanding in the Brazilian market.

Positive

• Prosus increases its stake in iFood to 100%, enhancing its market position.
• The acquisition supports growth in the rapidly expanding Brazilian food delivery market.
• iFood's strong performance and profitability in own-delivery model are positive indicators.

Negative

• None.

AMSTERDAM--(BUSINESS WIRE)-- Prosus (Euronext Amsterdam: PRX; JSE: PRX), a global consumer internet group and one of the largest technology investors in the world, today announced it has entered into an agreement to acquire the remaining 33.3% stake in iFood, from minority shareholder Just Eat Holding Limited for €1.5bn in cash plus a contingent consideration of up to €300m. Following the transaction, Prosus and its affiliate company, Movile (a Brazilian investor in technology companies) will fully own iFood.

iFood has performed exceptionally well since Prosus first invested in the business through Movile, founded by Fabricio Bloisi, in 2013. Starting as an online food ordering website, the company rapidly developed into an industry leader with a reputation for innovation. iFood stands out among the first to develop own-delivery, which is now profitable. Today, iFood is a leading platform business which includes food delivery, grocery, quick commerce, and fintech. The nearly decade-long commitment from Prosus has helped to enable iFood’s success.

‘’We first invested in iFood nearly a decade ago and during this time Fabricio and team have built a world-class food delivery business. They have shaped the sector in Brazil, creating a platform that serves 330,000 restaurant partners, provides income opportunity for 200,000 delivery partners, and delivers approximately 70 million orders every month. Increasing our stake to full ownership is a demonstration of our committed and disciplined approach to investment and reflects our confidence in the long-term potential of iFood. We are excited to continue to be a supportive and active partner for iFood as the company steps into its next phase of innovation and growth,” said Bob van Dijk, CEO, Prosus.

“The Brazilian Food Delivery sector has grown significantly over the past four years. There is substantial opportunity for further expansion in both the restaurant food delivery business and through building out the platform in areas such as grocery and quick commerce. iFood has established itself as a technology leader in Brazil and its success places it among the most innovative food delivery companies across the globe. We are thrilled to be fully backing the company on its path to transform the entire food chain to better serve customers,” said Larry Illg, CEO of Prosus Food.

“Prosus has been a committed partner to iFood and Movile over the last decade. I am delighted that they continue to have such strong belief in our vision and ability to build a successful business that Brazilians can continue to be proud of,” said Fabricio Bloisi, Movile founder and iFood CEO. “Together we will build a platform of offerings that provide Brazilian customers, delivery partners, restaurants and more, with the best experience in food, grocery delivery and fintech.”

Prosus has a strong track record of investing in, transforming and scaling food delivery businesses in some of the world’s highest growth markets. Today, Prosus has a broad global perspective on the food delivery industry with a presence in 57 markets globally. Prosus is well-positioned at the forefront of the transformation that is happening across the food delivery value chain, from how food is sourced, to how it is prepared and consumed.

Prosus has built a leading global portfolio of online food delivery companies, including iFood in Latin America, Swiggy in India, and Delivery Hero, which has a presence in more than 50 countries. Prosus is also an active investor in adjacent businesses including Flink, Foodics, Oda and Sharebite.

About Prosus

Prosus is a global consumer internet group and one of the largest technology investors in the world. Operating and investing globally in markets with long-term growth potential, Prosus builds leading consumer internet companies that empower people and enrich communities.

The group is focused on building meaningful businesses in the online classifieds, food delivery, payments and fintech, and education technology sectors in markets including India and Brazil. Through its ventures team, Prosus invests in areas including health, logistics, blockchain, and social commerce. Prosus actively seeks new opportunities to partner with exceptional entrepreneurs using technology to improve people’s everyday lives.

Every day, billions of customers use the products and services of companies that Prosus has invested in, acquired or built, including 99minutos, Airmeet, Aruna, AutoTrader, Autovit.ro, Azos, BandLab, Bibit, Biome Makers, Borneo, Brainly, BUX, BYJU'S, Bykea, Captain Fresh, Codecademy, Collective Benefits, Creditas, DappRadar, DeHaat, dott, EduMe, ElasticRun, eMAG, Endowus, Eruditus, EVERY, Facily, Flink, Foodics, Good Glamm Group, GoodHabitz, GoStudent, Honor, iFood, Imovirtual, Klar, Kovi, LazyPay, letgo, Luno, Mensa Brands, Meesho, merXu, Movile, Oda, OLX, Otodom, OTOMOTO, PaySense, PayU, Pharmeasy, Platzi, Property24, Quick Ride, Red Dot Payment, Republic, Shipper, ShopUp, SoloLearn, Stack Overflow, Standvirtual, Superside, Swiggy, Thndr, Tonik, Ula, Urban Company, Wayflyer, and Wolt.

Hundreds of millions of people have made the platforms of Prosus’s associates a part of their daily lives. For listed companies where we have an interest, please see: Tencent, Delivery Hero, Remitly, Trip.com, Udemy, Skillsoft, Sinch, and SimilarWeb.

Today, Prosus companies and associates help improve the lives of more than two billion people around the world.

Prosus has a primary listing on Euronext Amsterdam (AEX:PRX) and secondary listings on the Johannesburg Stock Exchange (XJSE:PRX) and a2X Markets (PRX.AJ). Prosus is majority-owned by Naspers.

For more information, please visit www.prosus.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220818005814/en/

Enquiries

Investor Enquiries

Eoin Ryan, Head of Investor Relations

+1 347-210-4305

Media Enquiries

Shamiela Letsoalo, Media Relations Director

+ 27 78 802 6310

Source: Prosus

FAQ

What is the value of Prosus's acquisition of iFood?

Prosus acquired the remaining 33.3% stake in iFood for €1.5bn in cash, with a potential contingent consideration of up to €300m.

How does the acquisition of iFood impact Prosus's market position?

The acquisition gives Prosus full ownership of iFood, enhancing its position in Brazil's growing food delivery market.

When did Prosus originally invest in iFood?

Prosus first invested in iFood in 2013 through its affiliate Movile.

What is iFood's contribution to the Brazilian food delivery market?

iFood serves 330,000 restaurant partners and delivers approximately 70 million orders every month, establishing itself as a market leader.

What is the strategic significance of this acquisition for Prosus?

This acquisition reflects Prosus's commitment to iFood and confidence in its long-term growth potential, particularly in the food delivery sector.