DoorDash will purchase British rival Deliveroo for $3.85 billion, the companies announced on Tuesday after resuming negotiations last month.
Deliveroo was approached by DoorDash with a 180 pence per share proposal, which was confirmed as the final offer, boosting Deliveroo by about 2% to 175.6 pence per share.
Previous talks had stalled over disputes about Deliveroo’s valuation.
DoorDash said it would not make a better offer unless a third party emerged with a competing bid.
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The acquisition will help DoorDash grow its market share in Europe as it competes against Uber Eats and Just Eat. Deliveroo’s largest markets are Britain and Ireland, making up 62% of the value of its orders in its latest quarter.
Deliveroo’s shares have struggled since their trading debut in 2021, when it was sold at 390 pence while meal delivery services were bolstered by the COVID-19 pandemic. The company then saw its shares dip by as much as 30% shortly after its trading began, marking one of the worst trading debuts on the London Stock Exchange, and its shares have since continued to drop.
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“Following careful consideration, the Deliveroo Independent Committee has unanimously decided to recommend this offer, considering it to be in the interests of all our shareholders and wider stakeholders,” company chair Claudia Arney said in a statement.
Deliveroo said it has received undertakings of support from investors holding about 15.4% of the shares, including from founder and chief executive Will Shu, Greenoaks and DST Global.
Amazon, Deliveroo’s largest investor with a 14.38% stake in the company, was absent from the list.
Shu, who co-founded Deliveroo in 2013 and heads the company, is set to receive about $229.7 million for his 6.4% stake.
Last year, DoorDash and Deliveroo had orders worth about $90 billion combined, according to the companies.
Reuters contributed to this report.
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