DoorDash to Buy Instacart for ~$17B as Q3 GTV Climbs 15%
CART sits 87% above its 52-week low of $32.73.
Summary
Instacart agreed to be acquired by DoorDash in a cash-and-stock deal valuing the company at roughly $17 billion in equity value, disclosed alongside Q3 results that included EPS of 60c. The quarter itself was strong: GTV rose 15% to $10,528 million, revenue grew 17% to $1,095 million, and adjusted EBITDA climbed 23% to $342 million, with GAAP net income of $147 million. Management called it the best quarter as a public company, with advertising and other revenue up 23%. Because of the pending transaction, Instacart cancelled its November 5 earnings call and suspended guidance, withdrawing prior long-term targets. This follows the October 23 report that Instacart was exploring a sale with an investment bank, and the October 26 8-K on winding down Caper Cart. The deal now sets the price for CART; DoorDash (DASH) is the acquirer and carries the integration and regulatory risk.
At the time of this announcement, CART was trading at $61.25 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $13.5B. The 52-week trading range was $32.73 to $62.00. This news item was assessed with positive market sentiment and an importance score of 10 out of 10. Source: PR Newswire.