DoorDash Agrees to Acquire Instacart in $17 Billion Deal

DoorDash announced Thursday that it has reached a definitive agreement to acquire Instacart for $65 per share, putting the grocery platform’s equity value at about $17 billion.

At least 75% of the consideration will be paid in cash. The $65 amount is the price for each Instacart share, while about $17 billion is the aggregate equity value assigned to the company. The cash threshold describes how the consideration will be paid; the $17 billion figure is the company’s equity valuation.

DoorDash serves customers across restaurant, grocery and retail categories. Instacart operates a grocery marketplace and provides retailers with technology and advertising services. Both companies have activity in grocery delivery, while Instacart also serves retailers with technology and advertising.

The agreement follows Instacart’s earlier sale exploration and preliminary discussions with DoorDash and Uber. Uber later ended its talks. Those conversations were preliminary and were not certain to lead to a transaction. Thursday’s announcement sets the acquisition’s price and minimum cash portion.