DoorDash’s $8.1bn Acquisition of Wolt

By Tudor Popescu, Bella Chen, Devashree Goenka and Max Averbach (University of Chicago), Knut Örnéus, Anna Muižniece and Jacob Andersson (Stockholm School of Economics)

 

Overview of the deal


Acquirer: DoorDash

Target: Wolt

Total Transaction Size: $8.1bn

Announcement date: 9th November 2021

Expected close date: H1 2022

Acquirer advisor: Goldman Sachs

Target advisor: Qatalyst Partners


American food delivery giant DoorDash has announced to acquire the Finnish online food platform Wolt in an all-stock transaction worth $8.1bn, which is the greatest acquisition yet in the industry in Europe. It is DoorDash’s second acquisition in 2021 and sixth in total.


For DoorDash, the acquisition will enable the firm to access 22 new countries corresponding to 700 million potential customers. The combined firm will also broaden the total available market (TAM), enhance investment efficiency and improve the profit potential in the long-term through increased combined product expertise and operational excellence.


Furthermore, DoorDash believes that the acquisition will lead to accelerated product development, a larger focus on multiple markets, as well as increased value to both customers and couriers. The long-term ambition with the merger is to create one of the global leading players in the food delivery industry.


“DoorDash and Wolt share a vision to build a global platform for local commerce that empowers the communities we operate in.” - Tony Xu, Co-founder and CEO of DoorDash

Company Details (Acquirer - DoorDash)


DoorDash is an American public company that provides an online food ordering and food delivery platform. The firm is headquartered in San Francisco, California, and was co-founded in 2013 by its CEO Tony Xu. DoorDash has grown rapidly since its foundation but experienced a significant rise in the use of its platform after quarantine measures were implemented due to the Covid-19 pandemic. The firm has today over 20 million customers and 1 million couriers in the United States, Canada, Australia, and Japan.


Founded in 2013, headquartered in San Francisco, California (USA)

CEO: Tony Xu

Number of employees: 6,000

Market Cap: $62.78bn (as of 1/12/2021)

EV: $58.99bn

LTM Revenue: $4,558m

LTM EBITDA: $-465m

LTM EV/Revenue: 12.9x