DoorDash Inc said Tuesday it will buy Finland-based rival Volt Enterprises Oy in an all-stock deal worth about 7 billion euros ($8.09 billion), as the biggest US food delivery expands into Europe.
Demand for services offered by DoorDash and rivals grew rapidly during the pandemic. This high growth rate is likely to subside as more people set off on a wave of consolidation in the region.
Shares of DoorDash rose 8% in post-market trading volume, allowing the company to enter 22 additional markets, including Germany, Serbia, Croatia, Denmark and Sweden, as well as slashing third-quarter revenue. I.
Volt, since its first delivery in 2015 in Helsinki, Finland, has grown to expand into Europe and Asia and has more than 30,000 restaurant and retail partners.
“Joining forces with Walt will allow us to accelerate our international growth, while keeping our focus on the US,” DoorDash chief executive Tony Xu said in a statement.
The acquisition of US-based Grubhub Inc. by Dutch company Just Eat Takeaway.com and the purchase of Postmates Inc. by Uber Inc. are among some other big deals in the delivery business.
Vault and DoorDash said they expect combined adjusted core earnings break-even in 2022 to be between $500 million and $500 million, with the deal expected to close in the first half of next year.
Vault’s chief executive officer, Mickey Cousy, will run DoorDash’s international division, reporting to Tony Xu.
The companies said DoorDash equity issued as part of the deal would be valued at $206.45 per share.
Separately, DoorDash said its third-quarter revenue rose 45% to $1.28 billion, surpassing estimates of $1.18 billion, according to Refinitiv IBES.
However, the company reported a loss of 30 cents per share, while analysts had expected a loss of 26 percent.
($1 = 0.8655 Euro)
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