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Takeaways from the Key Takeaways
- DoorDash is acquiring British delivery firm Deliveroo for about 2.9 billion pounds ($3.86 billion) in cash, expanding the U.S. company's geographic reach.
- DoorDash will pay 180 pence ($2.40) a share for the British company, confirming the terms of its "indicative proposal" that Deliveroo announced late last month.
- DoorDash CEO Tony Xu said combined, the two companies would cover more than 40 countries.
DoorDash (DASH) is acquiring British delivery firm Deliveroo for about 2.9 billion pounds ($3.86 billion) in cash, expanding the U.S. company’s geographic reach.
DoorDash shares are slipping 1% in premarket trading, though they are up by more than 20% this year entering Tuesday. Deliveroo shares are rising 2% in London trading at 175 pence, still under the offer price.
DoorDash is paying 180 pence ($2.40), per share, for the British company. This confirms the terms in its “indicative proposition” that Deliveroo revealed late last month. This is a 44% increase over Deliveroo’s close price of 125p on April 4, the final business day before DoorDash sent its offer letter.
"We'll cover more than 40 countries with a combined population of more than 1 billion people, enabling us to provide more local businesses with the tools and technology they need to thrive," DoorDash CEO Tony Xu said.
Deliveroo is a London-based company that was founded in 2013. It operates in nine countries, including France and Ireland. DoorDash, which was founded in the same year, is now available in over 30 countries.
Separately on Tuesday, DoorDash also announced that it had reached a contract to purchase New York-based SevenRooms in exchange for $1.2 Billion in cash. The transaction should close by the second half of 2025. DoorDash stated that the deal to acquire the software company specializing on hospitality technology would increase its commerce platform capabilities.
UPDATE—May 6, 2025: This article has been updated to include the SevenRooms deal and refreshed share prices.
