Uber × Postmates Acquisition

On December 01, 2020 Uber announced that it has completed the acquisition of Postmates Inc., a food delivery service, in an all-stock transaction for $2.65 billion. According to the announcement, Postmates continued to operate as a separate service with its own branding and front end while some back-end operations, including a shared pool of drivers, merged. When Uber presented its offer in June, Postmates was gearing up for an initial public offering for July. Postmates board, however, was concerned that being a smaller player in food delivery and the economic recession could cast a shadow over the new stocks long-term performance. The board instead decided to opt for certainty by agreeing to a tie-up with the well-capitalized Uber. According to Uber documents, the acquisition will provide the opportunity to eliminate redundant expenditures while improving operating efficiency. The company also anticipated $200 million of run-rate synergies one year after close.