Delhivery to Acquire Rival Ecom Express for an Amount Not Exceeding ₹1,407 Cr
In a significant development in the Indian logistics sector, Delhivery, a leading logistics firm, has announced that its board has approved the acquisition of shares equivalent to at least 99.4% of the issued and paid-up share capital, on a fully diluted basis, of rival Ecom Express. The acquisition is valued at a purchase consideration not exceeding ₹1,407 crore.
The acquisition is expected to strengthen Delhivery’s position in the Indian logistics market, particularly in the e-commerce space. Ecom Express is a well-established player in the logistics industry, with a strong network of delivery centers and a reputation for providing reliable and efficient services.
As per the agreement, Ecom Express will become a subsidiary of Delhivery post the completion of the acquisition. This move is expected to bring together two of the most prominent players in the Indian logistics sector, creating a dominant player in the market.
The acquisition is part of Delhivery’s strategy to expand its offerings and capabilities, and to provide its customers with a broader range of services. By acquiring Ecom Express, Delhivery will gain access to Ecom’s extensive network of delivery centers, which will enable it to expand its reach and capabilities.
Ecom Express has a strong presence in the e-commerce space, with a focus on providing logistics solutions to e-commerce companies. The company has a network of over 5,000 delivery centers across India, and has handled over 100 million shipments in the past year.
The acquisition is expected to be completed in the next few months, subject to regulatory approvals and other customary conditions. Delhivery has stated that it will maintain Ecom Express’s operations and management team, and will continue to provide its services to customers.
The news of the acquisition has been welcomed by the industry, with many experts hailing it as a strategic move by Delhivery to strengthen its position in the market. The acquisition is expected to create significant synergies for Delhivery, and will enable it to expand its offerings and capabilities in the e-commerce space.
“The acquisition of Ecom Express is a significant milestone for Delhivery, and will enable us to expand our offerings and capabilities in the e-commerce space,” said Sahil Barua, Co-Founder and CEO of Delhivery. “We are excited to welcome Ecom Express to the Delhivery family, and look forward to working together to provide our customers with the best-in-class logistics services.”
In conclusion, the acquisition of Ecom Express by Delhivery is a significant development in the Indian logistics sector, and is expected to create significant synergies for both companies. The acquisition will enable Delhivery to expand its offerings and capabilities in the e-commerce space, and will provide its customers with a broader range of services.
Source: https://x.com/moneycontrolcom/status/1908420621941297548
