DoorDash has reached an agreement to purchase the grocery delivery platform Instacart for $65 per share in a transaction that will be paid with at least 75% cash and up to 25% stock. The board of Instacart unanimously approved the deal, which represents a 26% premium to the company’s Oct 22 closing price and assigns an equity value of approximately $17B to the target. The companies expect to close the merger by the end of 2027 or the first half of 2028.
The acquisition was announced alongside DoorDash’s third-quarter results, where it reported revenue of $4.62B against estimates of $4.56B. To align the announcements, DoorDash rescheduled its earnings report from Nov 4 to Oct 29. Instacart also reported Q3 revenue of $1.10B, topping expectations, but the company suspended its long-term guidance and cancelled its scheduled earnings call for Nov 5.