U.S. delivery giant DoorDash announced plans to acquire grocery delivery company Instacart for approximately $17 billion. The transaction includes a premium to Instacart's equity value and is targeted to close from late 2027 to the first half of 2028.
DoorDash plans to acquire Instacart for approximately $17 billion and make it a wholly owned subsidiary after the acquisition. The transaction is planned at a 26% premium to Instacart's share price on the 22nd and is targeted to close following approval procedures and regulatory review.
The move represents a major consolidation as the delivery-services sector, which grew rapidly during the COVID-19 pandemic, undergoes restructuring. The article says the transaction is intended to increase business integration against a backdrop of accelerating industry consolidation.
The acquisition is expected to close from late 2027 to the first half of 2028, although the timing could shift depending on the approval process.