DoorDash agrees to buy Instacart for about $17 billion in cash and stock
DoorDash will pay $65 a share for Instacart, a 26% premium to its price before media reports of a deal, the companies said on Thursday. The deal needs Instacart shareholder and regulatory approvals and is expected to close at the end of 2027 or in the first half of 2028.
DoorDash has agreed to acquire grocery delivery company Instacart for $65.00 a share, giving it an equity value of about $17 billion, the two companies announced on Thursday 29 October. Instacart’s board approved the agreement unanimously.
The price is a 26% premium to Instacart’s closing price on 22 October, the last trading day before media reports about a possible deal, the companies said. At least 75% of the total payment will be in cash. Instacart shareholders can choose cash, DoorDash shares or a mix, with DoorDash stock capped at 25% of the total.
DoorDash said it would fund the cash portion with cash on hand and debt, and had a bridge loan commitment from JPMorgan Chase. The deal needs approval from Instacart shareholders and US antitrust clearance under the Hart-Scott-Rodino Act, as well as regulatory approvals in Canada and Israel. The companies expect it to close at the end of 2027 or in the first half of 2028. Holders of about 19% of Instacart’s shares have agreed to vote for it.
DoorDash said it would keep the Instacart brand and app, and that local grocers would remain free to work with any delivery platform.
“Grocery is one of the hardest things to get right online,” DoorDash chief executive Tony Xu said. Instacart chief executive Chris Rogers said joining DoorDash would allow the company “to do even more”.
As of 17:54 GMT, DoorDash shares were up 4.8% and Instacart’s parent company Maplebear was down 1.7%, according to Yahoo Finance data.
Sources
- DoorDash to Acquire Instacart to Help Local Stores Win · DoorDash
- DoorDash to Acquire Instacart to Help Local Stores Win · Instacart
- Stock Market Today: Nasdaq Leads Indexes Lower as Alphabet Stock Slips · Investopedia
- DoorDash, Inc. (DASH) quote · Yahoo Finance
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