3 Nov 2016 08:34
Acquisition of 100% of Delivery Club
3 November 2016. Mail.Ru Group Limited (LSE: MAIL, hereinafter referred as "the Company" or "the Group"), one of the largest Internet companies in the Russian-speaking Internet market, today announces the signing of the acquisition of 100% of Delivery Club, the number one food delivery company in Russia, from foodpanda.
The deal was signed today and is not subject to any third party approvals.
Mail.Ru Group will acquire 100% of Delivery Club in an all cash transaction. The total deal value is USD 100 million: 90 mln paid in November for 90% of Delivery Club and the remaining part in early 2017 for the remaining 10% of Delivery Club. Mail.Ru Group will fully consolidate Delivery Club and will disclose all results on a pro-forma basis going forward to allow like-for-like comparison.
Delivery Club is the leading player in the growing Russian food delivery market. It currently has over 4,500 connected restaurants and the number of orders reached 20,000 per day. In H1 2016 net revenues were RUB 296 million and the business was broadly EBITDA neutral.
Delivery Club mobile app is the main way users access the service and accounts for over 72% of total orders. This share has increased 2.7x over the last three years.
Commenting on the acquisition Mail.Ru Group Chairman and co-founder Dmitry Grishin said:
"While Mail.Ru Group has the lead in the Russian mobile space, the acquisition of Delivery Club further enhances our mobile offering. The Food delivery market continues to show steady growth and the combination of our network, resources and expertise with the leading market position of Delivery Club will allow us to take this business to even further success."
Ralf Wenzel, Founder and CEO of the foodpanda Group said:
"This transaction is a key milestone for foodpanda and proves our ability to successfully build and scale market-leading food delivery businesses. Transitioning our business to Mail.Ru Group, a local internet market leader, allows foodpanda to focus more on the expansion in the Asian, Middle Eastern and Eastern European markets, solidifying and expanding our leading market positions."
Notes to announcement:
Delivery Club's revenue and EBITDA numbers presented here are prepared based on principles used for the segment financial information of the Company's consolidated operations, i.e. do not include certain adjustments which would be required under IFRS. The accounting principles used in segment financial reporting are described in more detail in the Company's prior announcements.
For Further Information Please Contact:
Investors
Matthew Hammond
Phone: +971 505 56 1315
E-mail: hammond@corp.mail.ru
Press
Madina Tayupova
Phone: +7 926 510 50 21
E-mail: m.tayupova@corp.mail.ru
About Mail.Ru Group
Mail.Ru Group (LSE:MAIL, listed since November 5, 2010) is a leading company in the Russian-speaking Internet markets (Russia is Europe's largest Internet market measured by the number of users, comScore). Mail.Ru Group's sites reach approximately 93% of Russian Internet users on a monthly basis (comScore, June 2016).
In line with the 'communitainment' (communication plus entertainment) strategy, the Company is building an integrated communications and entertainment platform. The Company owns Russia's leading email service and one of Russia's largest internet portal, Mail.Ru (TNS, all Russia, age 12-64, June 2016). The Company operates the three largest Russian language social networks, VKontakte (VK), Odnoklassniki (OK) and Moi Mir (My World), and Russia's largest online games business (including such gaming titles as Warface, Armored Warfare, Skyforge and Perfect World). The Company also includes a leading OpenStreetMap-based offline mobile maps and navigation service MAPS.ME, two instant messaging (IM) services, Mail.Ru Agent and ICQ, which are popular in Russia and Commonwealth of Independent States (CIS), and other products.
About foodpanda Group
The foodpanda group is the leading online food delivery marketplace in emerging markets. The company operates in more than 20 growth countries in Asia, Middle East, and Eastern Europe. It enables restaurants to become visible in the online and mobile world and provides them with an industry leading software and technology to generate additional demand. For consumers, foodpanda offers the convenience to order food online and the widest gastronomic range, from which they can choose their favourite meal via app or online with a few fingertips. foodpanda has a market leading position in most of its markets, including India, Singapore, and Hong Kong. It has built proprietary food ordering software and technology for over 40.000 partner restaurants and over 6mm active users worldwide. Furthermore, foodpanda is able to ensure in-time delivery and quality through proprietary, own "last-mile" delivery technology and operations - even in complex markets and cities.