DoorDash said on October 29 it agreed to acquire Instacart for US$65 per share, valuing the grocery-delivery company at about US$17 billion. That is a 26% premium to Instacart’s October 22 closing price.

Instacart shareholders can choose cash, DoorDash stock, or both. The deal will be at least 75% cash, with DoorDash stock making up no more than 25% of the total consideration.

The companies said the deal would pair Instacart’s grocery and fulfilment technology with DoorDash’s delivery network.

The deal value is higher than Instacart’s US$9.9 billion initial public offering valuation in 2023, but below its roughly US$39 billion private-market peak.

eMarketer said Instacart led US grocery delivery, while DoorDash said it led US grocery and retail order volume among third-party marketplaces.

🔗 Source: DoorDash

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