Israeli parking payments app Pango is today signing an agreement to buy taxi hailing app Gett (formerly Get Taxi). Pango will pay only $175 million for Gett, close to the valuation reported by "Globes" in March, and just above the fair value of $160 million that the largest shareholder in Gett, Swedish investment fund VNV Global, attributes to the company.
According to a source close to the deal, both companies will continue operating as independent and separate entities and the deal will not impact the companies' workforces.
In March it was reported that VNV estimated that Gett's valuation fell 24% in 2023, partly due to the war. At the same time, the company's shareholders claimed that the company has a solid cash flow and according to estimates, Gett has tens of millions of dollars in its coffers.
It was also reported in March that not all of Pango's shareholders support the planned deal, even at a price of $160 million.
At the same time VNV reported that Gett has been profitable since the third quarter of 2022 and despite the outbreak of the war in October 2023, the company has reached budgetary targets and has already returned to operations at 80% of pre-war levels. Gett has also been awarded the tender by the Ministry of Transport to provide taxi services to passengers at Ben Gurion airport.
"A vote of confidence in Israel's economy"
Pango CEO Jonathan Alon said, "We are delighted and thrilled to join the inspiring journey of Gett. Pango strongly believes in Gett as a growing and profitable company with extremely high business potential. We are full of appreciation for the revolution that Gett has been leading in the field of taxis in Israel and for the people who lead it every day, and we have significant plans for the continued development of the company in its areas of specialization. We are proud to sign an agreement for the acquisition of an Israeli company by an Israeli company, and see this as an expression of confidence in and strengthening of the Israeli economy, especially during these times."
Gett CEO Matteo de Renzi said, "We are excited to welcome Pango as our new owning shareholder. Gett has taken great strides in growing from a startup to profitable international business and we are grateful to our shareholders Claltech, VNV and MCI Capital for their direction and support over the years and to the company's employees for the loyalty and excellence they have shown. We expect to begin our next chapter as part of the Pango family."
Jefferies acted as sole financial advisor to Gett in its acquisition by Pango.
Published by Globes, Israel business news - en.globes.co.il - on May 9, 2024.
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