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LONDON - In a major consolidation move within the food delivery industry, DoorDash (NASDAQ:DASH), Inc. has agreed to purchase UK-based Deliveroo (OTC:DROOF) plc in a cash acquisition valued at approximately £2.9 billion. The transaction will be executed through a Scheme of Arrangement under British law.
The terms of the deal will see Deliveroo shareholders receive 180 pence for each share they hold, representing a significant premium over recent closing prices. This valuation implies an enterprise value for Deliveroo of roughly £2.4 billion and an EV/EBITDA multiple of about 13.4 times based on Deliveroo’s projected EBITDA for the full year of 2025.
DoorDash, a global technology company that connects local businesses to their communities, operates in over 30 countries and partners with more than 500,000 local businesses. The acquisition of Deliveroo, which operates in nine countries and has approximately 7 million monthly active consumers, is expected to strengthen DoorDash’s position as a leading global platform in local commerce.
The combined entity will serve approximately 50 million monthly active users across over 40 countries, leveraging DoorDash’s operational capabilities and Deliveroo’s local expertise. Deliveroo has consistently innovated in its sector, expanding beyond restaurant delivery to include grocery and retail partnerships.
The Deliveroo Independent (LON:IOG) Committee, excluding certain directors due to their significant shareholdings, has unanimously recommended the acquisition to its shareholders, with financial advisory provided by Goldman Sachs. Deliveroo’s CEO and Co-founder, Will Shu, expressed his support for the deal, emphasizing the shared strategic vision and values between the two companies.
DoorDash has confirmed that the financial terms of the acquisition are final and will not be increased unless a competing offer emerges. Regulatory and antitrust approvals are still required, and the acquisition is expected to close in the fourth quarter of 2025.
The announcement has outlined that Deliveroo’s performance in the fiscal year ending December 2024 included a Gross Transaction (JO:NTUJ) Value (GTV) of £7.1 billion and an adjusted EBITDA of approximately £140 million. Deliveroo is publicly listed on the London Stock Exchange (LON:LSEG) with the ticker symbol ROO, while DoorDash is listed on NASDAQ under the symbol DASH.
This report is based on a press release statement issued by DoorDash, Inc. detailing the proposed acquisition.
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