Deliveroo, the food delivery app, has agreed to be taken over by US giant DoorDash in a deal valuing the British business at £2.9bn.
The deal is the latest example of a UK-listed company being taken over by a US company.
The combined company will have a presence in more than 40 countries with global sales of about $90bn (£68bn).
“The combination with Deliveroo will strengthen DoorDash’s position as a leading global platform in local commerce,” the two firms said.
DoorDash is offering 180p per Deliveroo share, which marks a 44% increase on the UK company’s share price from the point when takeover talks were made public last month.
However, it is well below the 390p share price that Deliveroo first floated at when it launched on the London Stock Exchange in April 2021.
Will Shu, chief executive and co-founder of Deliveroo, said he was “very proud of everything we have achieved as a standalone business”.
However, he said the deal with DoorDash, which is based in San Francisco, was “transformative”.
“DoorDash and Deliveroo are like-minded organisations with a shared strategic vision and aligned values,” he said.
“The enlarged group will have the scale to invest in product, technology and the overall consumer value proposition.”
The takeover is to be put forward to shareholders for final approval.
Deliveroo, which was co-founded by Mr Shu in 2013, operates in nine countries with more 130,000 delivery riders.
It made sales of about £2bn in 2024, while DoorDash, which was set up in the same year, made some £8bn last year through its operations in more than 30 countries.
News of a potential agreement between the firms emerged just over a week ago, and sent Deliveroo’s share price up sharply.
