DoorDash agrees to pay $65 a share for Instacart in a $17 billion deal
The deal is at least 75% cash and values Instacart at about $17 billion. Closing isn't expected until the end of 2027 or the first half of 2028.
By Marcus Rodriguez ·
Why it matters: Instacart holders are offered $65 a share, mostly in cash, but the deal needs a shareholder vote and antitrust clearance, with closing expected late 2027 or 1H 2028.
For information only, not investment advice. Prices delayed.
DoorDash ($DASH) has agreed to acquire Instacart ($CART) for $65 a share, an equity value of about $17 billion, the companies said Thursday. Instacart's board approved the deal unanimously.
At least 75% of the total consideration is cash. Instacart holders can choose $65.00 in cash, 0.3372 DoorDash shares, or $48.75 in cash plus 0.0843 shares, with stock capped at 25% of the total. DoorDash expects to fund the cash portion with cash on hand and new debt, backed by a JPMorgan bridge loan commitment.
The premium depends on the starting point. The companies put it at 26% over Instacart's Oct. 22 close, the last trading day before media reports of a possible deal. CNBC puts it at 11% over Instacart's close on Wednesday.
DoorDash's pitch: Instacart customers could shop at more than 50,000 additional stores, and DashPass and Instacart+ members would pay one membership fee instead of two, which DoorDash estimates would save them $100 million a year. It expects to keep Instacart's brand and app. Those are promises, not results. DoorDash CEO Tony Xu said: "Grocery is one of the hardest things to get right online."
Patience is part of the price. Closing is expected at the end of 2027 or in the first half of 2028, pending an Instacart shareholder vote, US antitrust clearance and other approvals, including in Canada and Israel. Holders of about 19% of Instacart's shares have agreed to vote in favor. New York City's commission on consumer and worker protections said in a statement: "This proposed merger continues a troubling trend of mega-corporations consolidating."
Sources
Tags: mergers-acquisitions · antitrust · retail-consumer