DoorDash to Offer $2 Billion of Convertible Senior Notes to ‘Enhance Strategic Flexibility’
DoorDash plans to offer and sell $2 billion of convertible senior notes to “enhance strategic flexibility.”
The local commerce platform intends to use some of the net proceeds from the offering to fund the cost of entering into convertible note hedge transactions, and the remainder for general corporate purposes, “which may include potential acquisitions and potential repurchases of shares of our outstanding Class A common stock,” according to a Tuesday (May 27) press release.
The move came three weeks after DoorDash announced its plans to acquire hospitality tech company SevenRooms and local commerce platform provider Deliveroo.
When announcing its agreement to acquire SevenRooms, DoorDash said the deal will expand its commerce platform capabilities and enable it to help merchants serve their customers across all channels.
“With SevenRooms, we’re excited to give local businesses around the globe new ways to bring more guests in the door, build and grow direct relationships with their customers, access best-in-class CRM, and drive profitability through smarter marketing,” Parisa Sadrzadeh, vice president of strategy and operations at DoorDash, said at the time in a press release.
The acquisition of Deliveroo, which operates in more than 30 countries, partners with 500,000 local businesses and serves 42 million monthly active users, will strengthen DoorDash’s position as a platform in global commerce, DoorDash said in a May 6 press release.
The deal will add Deliveroo’s local expertise to DoorDash’s operating playbook, DoorDash CEO and co-founder Tony Xu said in the release.
“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,” Xu said.
DoorDash announced the acquisitions on the same day it reported its first-quarter earnings results, saying it set new quarterly records for total orders, marketplace gross order value, revenue and GAAP net income.
The company said in a May 6 earnings release that it is focused on expanding the quality and breadth of the products it offers and improving its execution, “as we believe this is the best way to drive long-term value for consumers, merchants, Dashers and our shareholders.”
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