(Reuters) -DoorDash Inc said on Tuesday it would buy Finland-based rival Wolt Enterprises OY in an all-stock deal valued at about 7 billion euros ($8.09 billion), as the biggest U.S. food delivery company looks to expand its international footprint.
Shares in DoorDash jumped 4% after the bell.
The food delivery industry booked outsized sales gains during 2020 as lockdowns drove people to order in more, with experts saying ordering habits have likely changed permanently and companies like DoorDash, Uber Eats and Grubhub Inc are expected to show solid growth for several years.
Wolt, which delivers orders from local restaurants, grocery stores and other local shops, operates across 23 countries.
The companies said they expect combined adjusted core earnings to be between breakeven and $500 million in 2022, with the deal expected to close in the first half of next year.
Wolt Co-Founder and Chief Executive Officer Miki Kuusi will run DoorDash’s international division, reporting to the San Francisco, California-based firm’s top boss Tony Xu.
After expanding into Canada and Australia, DoorDash in June announced its launch in Japan, joining an increasingly crowded market for delivery services that has grown during the COVID-19 pandemic.
($1 = 0.8655 euros)
(Reporting by Praveen Paramasivam in Bengaluru; Editing by Devika Syamnath)
