6th May 2025 09:13
(Alliance News) - Deliveroo PLC on Tuesday said it has agreed a GBP2.9 billion takeover by Doordash Inc.
The cash offer from San Francisco-based DoorDash is worth 180 pence per Deliveroo share.
Shares in Deliveroo, the London-based food delivery company, rose 2.3% at 176.02 pence each in London on Tuesday for a market value of GBP2.63 billion. Deliveroo listed in London in 2021, priced at 390p per share.
Shares in Doordash closed up 0.2% at USD205.40 each in New York on Monday.
Talks between the two firms were confirmed last Monday.
The deal values Deliveroo at GBP2.9 billion on a fully diluted basis and implies an enterprise value of GBP2.4 billion, a statement on Tuesday said.
DoorDash said the deal will strengthen its position as a "leading global platform in local commerce, enabling the combined entity to better serve businesses, consumers and couriers."
The US firm said it sees the opportunity to allocate resources more "effectively to strengthen competitive advantage."
Doordash said it has received irrevocable undertakings from just over 15% of Delievroo investors.
Deliveroo Chief Executive and Co-Founder Will Shu said: "DoorDash and Deliveroo are like-minded organisations with a shared strategic vision and aligned values."
"The enlarged group will have the scale to invest in product, technology and the overall consumer value proposition," he added.
DoorDash Chief Executive Officer & Co-Founder Tony Xu said: "The enlarged group will bring together DoorDash's strong operating playbook with Deliveroo's local expertise to invest in innovation and execution at an even higher level".
The deal marks further consolidation in the food delivery industry after Prosus NV's bid for Just Eat Takeaway.com NV earlier this year.
By Jeremy Cutler, Alliance News reporter
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