Indonesian taxi-hailing software and payment giant Gojek and e-commerce giant Tokopedia announced on Monday that they will merge to create Indonesia’s largest internet company. This will be the largest corporate M&A transaction since Indonesia.
The combined company will be named Goto, a new giant integrating ride-hailing services, food delivery, and e-commerce. The two companies said that the transaction was supported by shareholders including Google and Alibaba ( US stock BABA ).
The two companies did not give the current value of the combined company in their statement but said that based on the historical funding of the two companies, the past total valuation was US$18 billion.
Andre Soelistyo, Gojek’s co-CEO, will serve as the CEO of the new company and will be responsible for leading the payment and financial services division of GoTo Financial. After the merger, Tokopedia CEO William Tanuwijaya will continue to lead the e-commerce business, and Gojek’s other co-CEO Kevin Aluwi will continue to lead ride-hailing and delivery services. Patrick Cao, President of Tokopedia, will continue to serve as President of the new company.