Delhivery in advanced talks to acquire rival logistics firm Spoton: sources

India’s homegrown logistics giant Delhivery has entered into advanced stage discussions to acquire a controlling stake in its rival Spoton Logistics – a Bengaluru-based express logistics firm, sources close to the matter has informed a section of the media. The discussions may or may not necessarily fructify into an eventual transaction, one of the sources clarified.

Delhivery, which is backed by investors such as Softbank, Tiger Global Management, The Carlyle Group, CPPIB, Fidelity and GIC, after its latest round of investment of $277 million, has been valued at around $3 billion.

Meanwhile, Spoton is promoted by PE firms Samara Capital and Xponentia Fund Partners. In August 2018, a consortia between these two PE firms purchased Spoton Logistics for approximately INR 550 crores.

“Prior to its listing, Delhivery wants to build scale via this proposed buyout. Spoton is complimentary to Delhivery’s business and is a suitable tuck in acquisition,” a source has been quoted as saying.

“The deal will facilitate an exit for Spoton’s private equity investors and an official announcement is likely next month,” informed another person aware of the matter.

If sources are to be believed, the two logistics firms have been discussing the acquisition for several months and now they seem to have come to an argeement on the deal valuation.

Another source threw some light on the benefits that the acquisition will bring in for Delhivery. “As Delhivery is more of an e-commerce logistics player and Spoton is primarily a trucking and road logistics player, this acquisition will bolster Delhivery’s traditional wing as well. Spoton’s B2B backend capability is also something of interest to Delhivery,” the source said.

Source: Money Control

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