Follow-up: DoorDash Signs Definitive Deal to Buy Instacart for $65 a Share, About $17 Billion, Closing Expected Late 2027 to Mid-2028
Delivery platform DoorDash and grocery delivery platform Instacart, operated by Maplebear, announced on October 29 that they had signed a definitive acquisition agreement on October 28: DoorDash will acquire Instacart for $65 per share, an equity value of approximately $17 billion, a premium of about 26 percent to Instacart's closing price on October 22, the last trading day before reports of sale talks emerged. GSM reported on October 24 that Instacart was in sale talks with Uber and DoorDash; the signing moves the transaction from talks to a formal agreement.
Under the agreement, at least 75 percent of the consideration will be paid in cash, with DoorDash common stock capped at 25 percent. For each share, Instacart stockholders may elect $65 in cash, 0.3372 shares of DoorDash common stock, or a mix of $48.75 in cash and 0.0843 DoorDash shares, subject to proration if the stock portion is oversubscribed. Instacart's board unanimously approved the agreement, and holders of about 19 percent of its outstanding shares have agreed to vote in favor.
DoorDash said the cash portion will be funded with cash on hand and debt financing, backed by a $13 billion, 364-day senior unsecured bridge loan commitment from JPMorgan Chase Bank. The transaction is expected to close in late 2027 or the first half of 2028, subject to antitrust and other regulatory clearances in the United States, Canada and Israel and approval by Instacart stockholders. A $650 million termination fee is payable by Instacart in specified competing-bid scenarios. The two companies will operate independently until closing, and DoorDash plans to retain the Instacart brand, app and enterprise technology products after closing.
Tony Xu, co-founder and chief executive of DoorDash, said in the joint announcement that grocery is one of the hardest things to get right online, that Instacart has spent years learning to do it well for grocers, and that DoorDash has built a delivery network and technology that local stores rely on every day.
The companies also reported third-quarter results the same day. DoorDash's third-quarter revenue rose 34 percent year over year to $4.6 billion, total orders rose 28 percent to 993 million, marketplace gross order value rose 36 percent to $33.9 billion, GAAP net income attributable to common stockholders rose 91 percent to $466 million, and adjusted EBITDA rose 41 percent to $1.06 billion. Instacart has suspended financial guidance.
Source: GSM · USA (original Chinese edition)
Photo: 图：DoorDash 公司标志。公共领域，经 Wikimedia Commons。 / DoorDash logo. Public domain, via Wikimedia Commons.
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