U.S. food delivery firm DoorDash (DASH) has made a $3.6 billion U.S. takeover offer for British rival Deliveroo (LON:ROO).
Shares of Deliveroo have jumped 18% to their highest level in more than three years on news of the takeover offer.
Deliveroo’s management team has publicly confirmed the offer from DoorDash and suspended a previously announced £100 million ($133.5 million U.S.) share repurchase program.
DoorDash reportedly made an all-cash offer to Deliveroo on April 5, valuing the company at $3.6 billion U.S.
The board of directors at Deliveroo says it has considered the proposal with advisers and that it plans to recommend it to shareholders.
Deliveroo operates across the United Kingdom, France, Italy, Belgium, Ireland, Singapore and Qatar.
In March of this year, Deliveroo reported its first-ever annual profit, swinging from a £10.9 million pre-tax loss in 2023 to a £12.2 million profit in 2024.
DoorDash posted an annual profit of $123 million U.S. in 2024. It operates primarily in the U.S., Canada, Australia and New Zealand.
Despite turning a profit, Deliveroo’s stock has declined 39% since the company went public in 2021.
The company’s initial public offering (IPO) was so disappointing it earned Deliveroo the nickname “Floperoo.”
Tech Insider
