I'm LongbridgeAI, I can summarize articles.DoorDash holds two-thirds of the food delivery market share in the United States, and this acquisition will help it enter the UK market and European urban areas. DoorDash stated that the acquisition will expand its business reach to over 40 countries. The total order volume of the two companies last year was approximately $90 billion, with a total of 50 million monthly active users
The integration of the food delivery industry is accelerating, and DoorDash will acquire Deliveroo for $3.9 billion.
According to an announcement from DoorDash on Tuesday, the American delivery giant DoorDash has agreed to acquire the UK food delivery platform Deliveroo at a cash price of 180 pence per share, which represents a 4.6% premium over Deliveroo's closing price of 172 pence yesterday.
This transaction values Deliveroo at approximately £2.9 billion (about $3.7 billion). DoorDash has made it clear that this is the final offer and will not increase the acquisition price.
It is worth mentioning that DoorDash holds two-thirds of the restaurant delivery market share in the United States, and this acquisition aims to strengthen its position in overseas markets, helping DoorDash enter the UK market and European urban areas.
Since its IPO in 2021, Deliveroo has been in trouble, with its earnings expectations falling far below analysts' forecasts, leading to a drop in its stock price in March. Additionally, due to poor sales performance and intensified competition, the company exited the Hong Kong market.
DoorDash stated that this acquisition will expand its business reach to over 40 countries. The total order volume of the two companies last year was approximately $90 billion, with a total of 50 million monthly active users.
Currently, the transaction requires approval from regulatory authorities and shareholders. Deliveroo's board (including CEO Will Shu) has agreed to provide their shares in the transaction. DoorDash has stated that it has already obtained consent from shareholders representing 15.4%. The transaction needs approval from shareholders representing 75% of Deliveroo.
Deliveroo's stock closed at 172.10 pence in London last Friday, having risen 21% so far this year. DoorDash rose 31 cents on Monday, closing at $205.40, with a year-to-date increase of 22%.
In recent years, the food delivery industry has faced growth bottlenecks and fierce competition, leading to accelerated mergers and acquisitions in the industry. This acquisition of Deliveroo by DoorDash is the latest case of consolidation in the food delivery sector. Previously, Prosus NV agreed to acquire the Amsterdam-based delivery platform Just Eat Takeaway.com NV in February