DoorDash’s $410 Million Acquisition of Caviar

Skadden advised DoorDash on the definitive agreement with Square (NYSE: SQ) to acquire Caviar for $410 million in cash and DoorDash preferred stock.

Founded in 2013, DoorDash is the fastest-growing last-mile logistics platform in the U.S. DoorDash empowers merchants to grow their businesses by offering on-demand delivery, data-driven insights, and better in-store efficiency, providing delightful experiences from door to door.

Caviar is an all-in-one food ordering platform that connects diners with the most crave-worthy restaurants, via convenient delivery, pickup, or catering. Caviar, part of Square’s suite of services for businesses, partners with thousands of restaurants in hundreds of cities across the U.S., to grow their sales and bring them new customers.

DoorDash’s acquisition of Caviar creates a highly differentiated company with a unique brand and wide-ranging selection.

The acquisition underscores both DoorDash and Caviar’s strategic commitment to merchant selection. The addition of Caviar’s premium restaurants, with whom DoorDash will work closely to drive their growth, will enable the combined organization to cater to every food preference and occasion. Caviar’s complementary geographic footprint provides DoorDash with a significant number of new and unique customers, who will benefit from an even broader set of merchants.

Furthermore, DoorDash will benefit from Caviar’s leading technology and exceptional team, who are deeply passionate about the restaurant delivery experience for merchants, couriers and customers. The Caviar team, including Caviar Lead Gokul Rajaram, will join DoorDash once the acquisition closes.

The transaction continues to build on the partnership between DoorDash and Square. DoorDash is currently integrated with Square for Restaurants point of sale, which streamlines the acceptance of online and in-person orders for merchants, and in the second quarter Cash Boost partnered with DoorDash to provide instant rewards when customers use their Cash Card at DoorDash.

The Skadden team includes M&A partner Mike Ringler (Picture) and associates Yulia Buyanin and Christopher Hammond; Intellectual Property and Technology counsel Ken Kumayama; Labor and Employment partner Karen Corman (Los Angeles) and associate Anne Villanueva; Executive Compensation and Benefits counsel Thomas Asmar; Tax partner Sean Shimamoto; and Antitrust/Competition partner Steven Sunshine (Washington, D.C.) and counsel Steven Albertson (Washington, D.C.).

Involved fees earner: Steven Albertson – Skadden Arps Slate Meager & Flom; Thomas Asmar – Skadden Arps Slate Meager & Flom; Yulia Buyanin – Skadden Arps Slate Meager & Flom; Karen Corman – Skadden Arps Slate Meager & Flom; Christopher Hammond – Skadden Arps Slate Meager & Flom; Ken Kumayama – Skadden Arps Slate Meager & Flom; Mike Ringler – Skadden Arps Slate Meager & Flom; Sean Shimamoto – Skadden Arps Slate Meager & Flom; Steven Sunshine – Skadden Arps Slate Meager & Flom; Anne Villanueva – Skadden Arps Slate Meager & Flom;

Law Firms: Skadden Arps Slate Meager & Flom;

Clients: DoorDash Inc.;

Author: Ambrogio Visconti