DoorDash agrees $17 billion acquisition of Instacart

DoorDash ($DASH) signed a definitive agreement to buy Instacart ($CART) for approximately $17 billion in equity value, or $65 per share. At least 75% of the aggregate consideration will be cash; shareholders can elect cash, DoorDash shares or a combination, subject to proration. The proposed combination would pair DoorDash’s delivery network with Instacart’s grocery marketplace, retailer software and advertising business.

Completion is expected in late 2027 or the first half of 2028 and requires shareholder and regulatory approvals. The companies will remain independent until then, and DoorDash plans to retain Instacart’s brand and app. Instacart separately reported third-quarter revenue of $1.095 billion, up 17%, and net income of $147 million. It suspended financial guidance because of the transaction. The signed agreement is a substantive advance from earlier takeover reports.

Sources:

• ir.doordash.com
• nasdaq.com
• PR Newswire