Logistics company Delivery announced its plans to acquire rival company Ecom Express for ₹1,407 crore. The acquisition is set to be completed within the 6 months following the finalization of the Share Purchase Agreement (SPA).
“The Board has approved the execution of the Share Purchase Agreement amongst the Company, the Target Company (Ecom Express) and their shareholders and execution of other necessary documents regarding the aforementioned acquisition (“Transaction Documents”),” Delivery stated in a regulatory filing. “Post completion of such acquisition, Ecom will become a subsidiary of the Company.”
The leaders of Delhivery and Ecom Express have expressed their own thoughts regarding the merger, highlighting their future plans and what they hope to achieve from the acquisition.
“We believe this acquisition will enable us to service customers of both companies better, through continued bold investments in infrastructure, technology, network and people,” stated Sahil Barua, the Managing Director and Chief Executive Officer (CEO) of Delhivery. “The founders and management of Ecom Express have established a high-quality network and team, creating a strong foundation to integrate into Delhivery’s operations.”
K Satyanarayana, the Founder of Ecom Express, added his own thoughts. “Delhivery is among India’s leading fully-integrated logistics service providers with significant scale advantages and will be the ideal shareholder for Ecom Express’ next phase of growth. With this acquisition and its inherent synergies, businesses across India as well as the logistics industry itself will benefit immensely through the combination of two like-minded players,” he said.
The Competition Commission of India has yet to approve the completion of the acquisition. For the transaction, Shardul Amarchand Mangaldas & Co. acted as the legal advisor, and Ernst & Young acted as Delhivery’s financial and tax diligence advisor.