DoorDash Strikes Deal to Buy UK’s Deliveroo for Almost $4B

DoorDash (DASH) is acquiring British delivery firm Deliveroo for about 2.9 billion pounds ($3.86 billion) in cash, expanding the U.S. company’s geographic reach.

DoorDash shares are slipping 1% in premarket trading, though they are up by more than 20% this year entering Tuesday. Deliveroo shares are rising 2% in London trading at 175 pence, still under the offer price.

DoorDash will pay 180 pence ($2.40) a share for the British company, confirming the terms of its “indicative proposal” that Deliveroo announced late last month. That translates to a 44% premium to Deliveroo’s closing price of 125 pence on April 4, the last business day before DoorDash’s offer letter.

“We’ll cover more than 40 countries with a combined population of more than 1 billion people, enabling us to provide more local businesses with the tools and technology they need to thrive,” DoorDash CEO Tony Xu said.

Deliveroo, which was established in 2013 and is headquartered in London, operates across nine markets, including France, Ireland, and Singapore. DoorDash was also founded the same year and is now in more than 30 countries around the world.