DoorDash plans $17 billion acquisition of Instacart

DoorDash says it will acquire Instacart in a deal valued at $17 billion, expanding its reach from restaurant delivery into groceries and other retail. The companies say the deal will broaden customer and seller options; it is expected to take about a year to close and may face regulatory scrutiny.

• DoorDash plans to acquire Instacart for $65 per share, valuing the deal at about $17 billion; at least 75% of the consideration will be cash. Instacart’s board unanimously approved the deal.· 2 sources
• The companies say the combination will expand DoorDash into grocery and retail delivery and give Instacart customers access to more stores. The BBC reports the companies plan to retain Instacart’s brand and app and operate independently until the deal closes.· 2 sources
• The BBC says completion is expected in about a year, potentially by the end of 2027 or in the first half of 2028, and notes possible antitrust scrutiny.· 1 source
• The New York Times describes the transaction as bringing together the country’s largest restaurant delivery service and its biggest online grocery platform.· 1 source