Uber Technologies Inc. announced Monday an agreement to acquire Postmates, Inc. a rival in their emerging retail delivery business.
The all-stock transaction between the two San Francisco-based companies is valued at $2.65 billion.
Wachtell, Lipton, Rosen & Katz advised Uber and the Bay Area office of Latham & Watkins advised Postmates. Latham M&A associates Daniel Harrist and Rebecca Kendall, both in Houston, were part of that team.
Texas lawyers did have a hand in the transaction. A Kirkland team from Dallas served as legal counsel to GPI Capital, a major stockholder of Postmates.
M&A partners Kevin Crews and Melissa Kalka headed the Kirkland team along with associate Ben Hardison; partners David Wheat and Lane Morgan provided tax advice. Crews also represented GPI Capital in the $225 million investment in convertible preferred equity for Postmates in 2019.
In announcing the acquisition, Uber cited Postmates’ strong relationships with small- and medium-sized restaurants, particularly local favorites, as a complement to its Uber Eats platform. As an early pioneer in the now-blossoming “delivery-as-a-service” industry, Postmates is expected to boost Uber’s growing efforts in the delivery of groceries, essentials, and other goods.
Depending on how you count — in a thus far miserable year for M&A — the $2.65 billion Uber deal ranks as the third or fourth largest M&A transaction involving Texas lawyers. The deal sits behind the $4.5 billion sale of Anixter International to Wesco and the $2.7 billion sale of Lummus Technology by bankrupt McDermott International. The $4.6 billion merger between Waste Management and Advanced Disposal was a coronavirus reboot of a $4.9 billion merger announced last year.
In March, Uber requested a two-year delay in the timing of its investment commitments related to tax abatements for expanded hubs in Dallas and Chicago.