DoorDash to Acquire Deliveroo in £2.9 Billion Takeover Deal

British food delivery firm Deliveroo has accepted a takeover offer from American rival DoorDash, valuing the company at £2.9 billion ($3.9 billion). DoorDash will acquire all issued and to be issued shares in Deliveroo for 180 pence a share, representing a 44% premium to Deliveroo’s closing price on April 4.

Deliveroo's shares soared after confirming the offer. DoorDash CEO, Tony Xu, expressed excitement about the combined capabilities of the two companies, covering more than 40 countries with a population of over 1 billion people. The acquisition deal puts an end to Deliveroo’s challenging journey as a public company, with its shares falling more than 50% from the IPO price.

For DoorDash, the acquisition signifies a strategic move to expand its global presence. The food delivery sector has been witnessing consolidation, with previous deals including Deliveroo's sale of its Hong Kong unit and Just Eat's acquisition by Prosus.

Source: CNBC