DoorDash agrees to acquire Instacart in $17 billion deal

DoorDash agreed to acquire Instacart in a cash-and-stock transaction valuing the grocery delivery company at about $17 billion, pairing the platforms as DoorDash reported higher revenue and order volumes for the third quarter. The proposed deal, announced October 29, values Instacart at $65 a share and requires shareholder and regulatory approvals before it can close. At least 75% of the consideration will be cash, with DoorDash shares accounting for no more than 25%. Instacart shareholders may elect cash, stock or a combination, subject to proration if stock elections exceed the limit. DoorDash said it expects to fund the cash portion with cash on hand and debt. The companies expect the transaction to close at the end of 2027 or during the first half of 2028. Before closing, they will continue to operate separately. DoorDash said it expects to retain Instacart’s brand, app and enterprise technology products after the deal is completed. DoorDash said the combination would bring together its delivery network and Instacart’s grocery technology and retailer relationships. Chief Executive Tony Xu described the deal as a way to offer grocers and retailers more delivery and...