09:28 AM EDT, 05/06/2025 (MT Newswires) -- DoorDash ( DASH ) on Tuesday announced two acquisitions, including an agreement to acquire UK-based food delivery company Deliveroo for an equity value of about 2.9 billion British pounds ($3.88 billion), while reporting mixed first-quarter results.

Shareholders of Deliveroo will receive 180 pence per share in cash, the companies said in separate statements. The deal represents a premium of roughly 29% to Deliveroo's closing share price on April 24, the last business day before the company's board confirmed it received an acquisition proposal from DoorDash ( DASH ).

The transaction implies an enterprise value of Deliveroo of about 2.4 billion pounds, according to the companies. Deliveroo operates across nine countries, and served 7 million monthly active consumers last year.

DoorDash ( DASH ) expects the acquisition to strengthen its global position in local commerce and plans to invest in Deliveroo's business in the UK and other geographies. The combined group is anticipated to have a presence across 40 countries and serve around 50 million monthly active users. The companies generated a combined gross order value, or GOV, of about $90 billion in 2024.

"I could not be more excited by the prospect of what DoorDash ( DASH ) and Deliveroo will be able to accomplish together," DoorDash ( DASH ) Chief Executive Tony Xu said in a statement. "The enlarged group will bring together DoorDash's ( DASH ) strong operating playbook with Deliveroo's local expertise to invest in innovation and execution at an even higher level."

The transaction, which requires approval from Deliveroo's shareholders, as well as regulatory clearance, is expected to be completed in the fourth quarter.

"Together, we will be even better positioned to serve consumers, merchants, riders and local communities," Deliveroo CEO Will Shu said. "The enlarged group will have the scale to invest in product, technology and the overall consumer value proposition."

Separately, DoorDash ( DASH ) said it struck an agreement to purchase hospitality technology company SevenRooms in an all-cash deal for $1.2 billion. The deal, which is subject to regulatory approval, is expected to be completed in the second half.

DoorDash ( DASH ) reported net income of $0.44 a share for the March quarter, compared with a loss of $0.06 the year before. The consensus on FactSet was for GAAP EPS of $0.39. Revenue advanced 21% year over year to $3.03 billion, but missed the Street's view for $3.1 billion.

Marketplace GOV, which reflects the total dollar value of orders, including taxes, tips and membership fees, grew 20% to $23.08 billion, ahead of the average analyst estimate of $22.9 billion. Orders climbed 18% to 732 million, driven by gains in consumers and average consumer engagement, according to the company.

For the current quarter, DoorDash ( DASH ) anticipates marketplace GOV to be in a range of $23.3 billion to $23.7 billion, while the Street is looking for $23.31 billion.