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Deliveroo agrees to £2.9bn DoorDash sale
(Sharecast News) - Online food delivery company Deliveroo said on Tuesday that it has reached an agreement with US rival DoorDash on the terms of a recommended final cash offer, with its American rival set to pay £2.9bn for the consolidation. Deliveroo said the deal, which implies an enterprise value of £2.4bn and an enterprise value/underlying earnings multiple of approximately 13.4x, will see DoorDash pay 180.0p per Deliveroo share, a 44% increase on its share price from when takeover talks were made public in April.
However, the takeover amount still values Deliveroo at significantly less than what it was valued at when it first floated on the London Stock Exchange in April 2021, with a share price of 390.0p.
"The combination with Deliveroo will strengthen DoorDash's position as a leading global platform in local commerce," the two firms said.
Deliveroo chief executive Will Shu said: "We are now at the beginning of a transformative new chapter. DoorDash and Deliveroo are like-minded organisations with a shared strategic vision and aligned values. Together, we will be even better positioned to serve consumers, merchants, riders and local communities. The enlarged group will have the scale to invest in product, technology and the overall consumer value proposition."
As of 0830 BST, Deliveroo shares were up 1.98% at 175.50p.
Reporting by Iain Gilbert at Sharecast.com
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