(FT) Delivery firm DoorDash rose about 20% in premarket trading on Wednesday on news it will acquire Finnish delivery operator Wolt for 7 billion euros.
DoorDash expects the deal to diversify its markets beyond the native US, with Wolt boasting 4,000 employees and operations in 23 European markets.
The deal is expected to add at least 2.5 million active users on the Wolt app to DoorDash. Wolt’s gross order volume was more than $2.5 billion on an annualized basis as of Tuesday.
DoorDash is also expected to confirm about $400 million worth of investment in grocery app Flink starting on Tuesday as part of a $600 million Series B funding.
The news came when DoorDash’s revenue beat estimates, but the company’s loss more than doubled to $101 million in the third quarter from the prior year.
The all-stock transaction is expected to close in the first half of next year.
Once completed, DoorDash’s deal would be the biggest acquisition in the booming delivery market in Europe.
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