Deliveroo in Talks to Be Acquired by DoorDash
British food ordering platform Deliveroo said Friday (April 25) that it received a possible cash offer to be acquired by DoorDash.
The company said it made this announcement in response to press speculation and that it did so with the consent of DoorDash. The announcement was posted on both Deliveroo’s website and DoorDash’s website.
The possible cash offer is priced at 180 pence per Deliveroo share, the announcement said. Bloomberg reported Friday that the offer may amount to $3.6 billion.
“Having carefully considered the Possible Offer with its advisers, the Board of Deliveroo has indicated to DoorDash that, should a firm offer be made on the financial terms set out above, it would be minded to recommend such an offer to Deliveroo shareholders, subject to the agreement of the other terms of the offer.”
The board has decided to engage in discussions with DoorDash and has provided DoorDash with access to due diligence, according to the announcement.
“There can be no certainty that any firm offer for Deliveroo will be made,” the announcement said. “At this time, shareholders are advised to take no action in respect of the Possible Offer.”
It was reported in June that DoorDash approached Deliveroo about acquiring the company in May but that talks between the two firms ended when they couldn’t agree on a valuation.
In 2021, DoorDash acquired Deliveroo’s Finnish rival, Wolt.
DoorDash said in February that it is seeing a growing share of consumers order from not only its initial offering — restaurants — but also its new verticals that include a variety of retailers.
Since launching its new verticals offering in the U.S. in mid-2020 by adding groceries and convenience, the aggregator has expanded to include alcohol, pets, flowers, health and beauty, sporting goods and home improvement.
The selection of products the DoorDash marketplace now offers includes those from 94 of the top 100 restaurants and 44 of the top 100 retailers in the U.S.
DoorDash completed its acquisition of Wolt in June 2022, saying the deal gave DoorDash the opportunity to increase the scale of its international business multiple times over in a more efficient manner than if it only expanded to new markets on its own.
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