DoorDash To Buy Food Delivery Startup Wolt For 7 Bln Euros; Shares Jump 10%

Shares of DoorDash Inc. (DASH) jumped over 10% in after-hours trading on Tuesday after the company announced plans to buy Finland-based food delivery startup Wolt Enterprises OY in an all-stock deal valued at about 7 billion euros.

The company expects to close the deal in first half of 2022. DoorDash said it expects pro forma combined Adj. EBITDA of $0 to $500 million in 2022.

Wolt’s team of over 4,000 employees operates a leading local commerce platform across 23 countries, the company said.

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

Separately, the company announced third-quarter net loss of $101 million or $0.30 per share, wider than last year’s loss of $43 million or $0.96 per share. Revenues for the quarter rose to $1.275 billion from $879 million last year.

Analysts polled by Thomson Reuters expected a loss of $0.26 per share on revenues of $1.18 billion for the quarter. Analysts’ estimates typically exclude one-time items.

DASH closed Tuesday’s trading at $92.01, down $1.14 or 0.59%, on the Nasdaq. The stock, however, gained $19.99 or 10.41% in the after-hours trading.

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