The board of food delivery company Deliveroo has confirmed that it has "reached agreement" on the terms of a takeover offer from US rival DoorDash, marking its exit from the London Stock Exchange.
The agreed offer of 180p per share represents a 44 per cent premium on Deliveroo's closing share price on the day before the acquisition and a 40 per cent premium on its average price over the prior three months. This values the company's share capital at £2.9 billion, as reported by .
However, the offer still falls significantly short of Deliveroo's initial public offering (IPO) price of 390p when it first floated on the London Stock Exchange in April 2021.
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DoorDash, which itself floated in New York only a few months prior, stated that the terms of its offer were "final" and "would not be increased".
Global delivery giant
This latest US acquisition of a London-listed business will result in a combined group with a global presence spanning over 40 countries and serving around 50 million monthly active users.
Together, the two companies generated a total Gross Order Value of approximately $90 billion in 2024.
Will Shu, CEO of Deliveroo, who co-founded the business in 2013, commented: "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."
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"The enlarged group will have the scale to invest in product, technology and the overall consumer value proposition."
Deliveroo chair Claudia Arney stated: "Both companies are highly complementary, whether in their geographic footprints or their missions, and I am confident that being part of the enlarged group will accelerate the realisation of Deliveroo's full potential."
The deal is set to be subject to shareholder approval at an upcoming general meeting. Shu, who controls a 6.4 per cent stake in the company, could receive a £172m payday if the deal proceeds.