What lies behind the 10bis exit? Takeaway.com, a company listed on the Netherlands Stock Exchange, yesterday announced its acquisition of the meals ordering company for €135 million.
The figures provided by the acquiring company explain why 10bis's value was set so high. 10bis, which mediates between customers and restaurants, takes almost 10% of the amount of the order it supplies to its customers, who consist mainly of high-tech employees.
10bis's orders in 2017 averaged NIS 40 per meal, while its average revenue for a meal ordered through the company was NIS 3.70. In other words, each time a customer orders a meal, he or she is actually giving this amount to 10bis, half of which becomes EBITDA.
Sources familiar with the deal said today that Takeaway.com's strategy is to search for a dominant player in each market and acquire its activity. Unlike a typical high-tech deal, in which the acquiring company is interested in the company's technology, Takeaway.com is interested in 10bis's local market activity and customer base, which includes most of the major high-tech companies in Israel. 10bis currently has over 150 employees.
In order to get an idea of how high the price paid for 10bis is, it is interesting to consider the deal five years ago for the sale of 10bis's current competitor in Israel, Cibus, which was acquired by French group Sodexo for only NIS 67 million, although Cibus is much smaller and much less valuable company.
Founder Tamir Carmel scores again
Tamir Carmel, 46, a native of Zichron Yaakov now living in Tel Aviv, prefers to keep a low profile. He founded 10bis 18 years ago when he was only 28 and is likely to remain a consultant for the company after the sale. His personal proceeds from the acquisition will be over NIS 100 million.
Carmel told "Globes," I'll go on working in and developing 10bis. We're planning to recruit dozens of employees soon." He added that 10bis had an advantage for the consumer: "As a platform, 10bis generates competition for the customer's benefit between restaurants, which provide benefits and vouchers, and lowers food prices. 10bis makes the business succeed. We're planning on investing a lot more resources in order to offer customers a better product, better service, and a lower price."
The current deal is Carmel's second in a short timespan, after he sold 80% of 10bis to the TA Associates private equity fund in May 2016 in a deal whose financial details were not disclosed. A representative of TA Associates joined 10bis's board of directors at the time. Informed sources said that 10bis's value in the previous deal was less than NIS 80 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 30, 2018
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