Delivery service Deliveroo secures £2.9 billion deal for DoorDash acquisition
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გააNotify >% Deliveroo's board has confirmed the terms of a takeover deal with US competitor DoorDash, planning to exit the London Stock Exchange.
The proposed offer of 180p per share provides a 44% premium on Deliveroo's closing price on the previous acquisition day and a 40% premium on the average price from the preceding three months. This valuation determines Deliveroo's share capital at £2.9bn.
Nonetheless, the bid falls well below Deliveroo's initial public offering (IPO) price of 390p when it debuted on the London Stock Exchange in April 2021.
DoorDash, fresh from its New York IPO, asserted that the terms remain firm and would not be escalated.
Global Delivery Titan
This acquisition, a part of numerous US acquisitions of London-listed businesses, will create a global presence in over 40 countries, serving roughly 50 million monthly active users.
The combined entities amassed a total Gross Order Value of approximately $90bn in 2024.
Deliveroo CEO Will Shu, who co-founded the business in 2013, said: "We're embarking on an exciting new phase.
"DoorDash and Deliveroo share similar mindsets and a common strategic vision. The merged group will boast the scale to invest in product, technology, and customer experience."
Deliveroo chair Claudia Arney added: "Both companies are highly compatible, be it geographically or mission-wise. I'm optimistic that joining forces will expedite the realization of Deliveroo's full potential."
The deal is dependent on shareholder approval at a forthcoming general meeting. Among those set to profit from the deal is Shu, who owns a 6.4% stake in the company, potentially securing a £172m windfall.
SevenRooms Acquisition
Additionally, DoorDash announced the acquisition of US-based hospitality software firm SevenRooms in a $1.2bn deal.
"This move expands DoorDash's Commerce Platform capabilities, arming merchants with innovative tools to boost in-store sales, forge stronger customer connections, and enhance profits," DoorDash stated.
The firm reported a 18% surge in total orders to 732 million, accompanied by a 21% revenue jump to $3.0 billion.
[1] - Deliveroo Agrees Takeover by DoorDash[2] - Deliveroo Accepts $3.9bn Takeover Bid from DoorDash[3] - DoorDash and Deliveroo: What the Merger Means for the Food Delivery Market[4] - Deliveroo Market Share and Growth Prospects[5] - Deliveroo's IPO Raises around £1.5 billion
The technology and product investment plans of the global delivery titan, formed by the merger of DoorDash and Deliveroo, will be bolstered by their shared mindsets and strategic visions.
Despite the weather being unfavorable for outdoor sports, the combination of DoorDash's acquisition of SevenRooms and its expanded Commerce Platform capabilities could potentially drive an increase in in-store sales.
