Israeli parking payments app Pango today signs an agreement to buy taxi-hailing app Gett (formerly Get Taxi). Pango will pay just $175 million for Gett, which is close to the valuation Globes announced in March, and just above the $160 million fair value attributed to the company by Gett's largest shareholder, Swedish investment fund VNV Global.
According to a source close to the deal, the two companies will continue to operate as independent and separate entities and the deal will not impact the workforce at the two companies.
In March, it was reported that VNV estimated that Gett's valuation would fall by 24% in 2023, partly due to the war. At the same time, the company's shareholders claimed that the company had strong cash flow and according to estimates, Gett had tens of millions of dollars in its coffers.
It was also reported in March that not all Pango 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 war in October 2023, the company has reached budget targets and has already returned to operations at 80% of pre-war levels. Gett also received a tender from the Ministry of Transportation to provide taxi services to passengers at Ben Gurion Airport.
“A vote of confidence in the Israeli economy”
Jonathan Allon, CEO of Pango, said, “We are thrilled and excited to join Gett's inspiring journey. Pango strongly believes in Gett as a growing and profitable company with very high business potential. We are fully appreciative of the revolution that Gett has led in the taxi industry in Israel and for the people who drive it.” Every day, we have great plans for the continued development of the company in its fields of specialization. We are proud to sign an agreement to acquire an Israeli company, and we consider this an expression of confidence in the Israeli economy and its strengthening, especially in these times.”
“We are excited to welcome Pango as our new owner shareholder. Gett has made great strides in growing from a startup to a profitable international company and we are grateful to our shareholders Claltech, VNV and MCI Capital for their guidance,” said Matteo De Renzi, CEO of Gett. And the 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.
Jeffries served 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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