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DoorDash to enter European market with $8 billion deal for Wolt -Breaking

© Reuters. FILE PHOTO – A DoorDash sign was pictured in a New York City restaurant on December 9, 2020, the day that they held their IPO. REUTERS/Carlo Allegri

(Reuters] -DoorDash Inc stated Tuesday that it was buying Wolt Enterprises OY from Finland in an all stock deal worth approximately 7 billion euro ($8.9 billion). This is as America’s largest food delivery service expands to Europe.

During the pandemic, demand for DoorDash’s services and those of its competitors soared. As more people leave, the sector will see a consolidation wave.

DoorDash saw its shares rise 8% in aftermarket trading as the company acquired 22 more markets including Germany and Denmark. The acquisition also gives the company a boost on revenue for the third quarter.

Wolt was founded in Helsinki in 2015. It has since expanded to Asia and Europe.

Tony Xu from DoorDash stated in a statement that “joining forces…will… allow us… to accelerate our global growth, while elevating the U.S. focus,”

The acquisitions of Grubhub Inc in U.S. by Just Eat, Uber (NYSE) Inc and Postmates Inc were some other major transactions in the delivery industry.

Wolt, DoorDash stated that they anticipate combined adjusted core earnings of between $500 million to breakeven by 2022. They expect the deal to close within the first quarter next year.

Wolt Chief Executive Miki Kuusi (reporting to Tony Xu) will oversee DoorDash’s international division.

The deal includes DoorDash equity, which will be worth $206.45 per share.

DoorDash also reported that its third quarter revenue increased 45% to $1.28 Billion, surpassing estimates of $1.18 Billion, according to Refinitiv International Business Economics.

However, the company reported a loss per share of 30cs. Analysts had predicted a loss of 26 cents.

($1 = 0.8655 euros)

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.