After buying out Delivery Hero completely, Uber Technologies Inc
The company could spend as much as $13 billion on the two deals, beyond what it has already spent on Delivery Hero's shares, according to BTIG.
The Uber Technologies Rating: Analyst Jake Fuller maintained a Buy rating and price target of $100.
The Uber Technologies Thesis: The company funds acquisitions with cash and debt, Fuller said in the note. The deals will add more than $66 billion to Uber's bookings and be accretive to its revenue take-rate by more than 1 point. This gets the pro forma estimates for 2027 bookings to $341 billion and revenue to $87 billion, he added.
Fuller further expects pro forma EBITDA to reach $16.6 billion with a margin of around 19%.
He estimates earnings accretion of around 5%, excluding any incremental accretion from the divestiture of overlapping Delivery Hero markets.
The Deals: Uber had inked an agreement in July to acquire the remaining shares of Delivery Hero, expected to close in the back half of 2027. The company now plans to acquire ezCater in a deal worth $2.3 billion, expected to close in the coming months.
Fuller said he estimates Uber Technologies to deploy $10.6 billion to buy the remaining shares of Delivery Hero. "Layering in the $2.3B for ezCater would put total uses at an estimated $12.9B," the analyst wrote.
The deals will likely leave Uber with $3.6 billion in cash and $21 billion in debt on a pro forma basis, he added.
UBER Price Action: Shares of Uber Technologies had declined by 1.09% to $68.33 at the time of publication on Wednesday.
