The combined entity is expected to operate in markets with more than 700 million people
Finnish food delivery firm Wolt to be acquired by DoorDash. (Credit: Wolt)
DoorDash, a US-based online food delivery company, has offered to acquire Finnish rival Wolt Enterprises in an all-stock deal worth around €7bn.
In this connection, DoorDash has signed a definitive agreement with certain stockholders of the Finnish firm.
As per the terms of the deal, DoorDash’s equity to be issued to Wolt Enterprises’ shareholders will be valued at $206.45 per share.
The boards of directors of both the firms have approved the deal. Apart from that, stockholders representing the majority of Wolt Enterprises’ shares have committed to back the deal.
Wolt Enterprises founder and CEO Miki Kuusi said: “DoorDash has built an incredible business in one of the most significant markets in the world, while we came from a small home country and had to master the art of expansion very early on.
“During this process, we’ve come to appreciate the many similarities of our two teams, cultures and companies, as we’ve been moulded by similar circumstances.”
The Finnish firm has a workforce of more than 4,000 employees. It operates a local commerce platform in 23 countries and is claimed to have monthly active users of more than 2.5 million.
According to DoorDash, the combination of technological innovation, operational expertise, and focus on the consumer experience of its Finnish rival will enable the combined firm to build a major local commerce platform and fuel considerable growth for several years.
The combined company is expected to operate in markets with more than 700 million people.
DoorDash co-founder and CEO Tony Xu said: “DoorDash and Wolt share a vision to build a global platform for local commerce that empowers the communities we operate in.
“Under the leadership of Miki Kuusi, Wolt has built a culture of optimism, operational rigor, and bias for action that matches our own.
“By joining forces, we believe we will accelerate our product development, bring greater focus to each of our markets, and improve the value we provide to consumers, merchants, as well as Dashers and couriers around the world.”
The deal, which is subject to applicable regulatory approvals and other customary closing conditions, is expected to be wrapped up in the first half of next year.