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July 6, 2020, 8:14 a.m. EDT

Uber confirms deal to buy Postmates in an all-stock deal valued at $2.65 billion

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By Tomi Kilgore

Shares of Uber Technologies Inc. /zigman2/quotes/211348248/composite UBER -1.91% ran up 9.4% in premarket trading Monday, after the ride-hailing giant confirmed a deal to buy food-delivery service Postmates Inc. for $2.65 billion in stock. Uber estimates that it will issue about 84 million shares of its common stock, representing about 4.8% of the shares outstanding, for 100% of Postmates's equity. After the deal's closing, which is expected in the first quarter of 2021, Uber plans to keep Postmates's app running separately from its own food-delivery service app Uber Eats. "Uber and Postmates have long shared a belief that platforms like ours can power much more than just food delivery-they can be a hugely important part of local commerce and communities, all the more important during crises like COVID-19," said Uber Chief Executive Dara Khosrowshahi. Bloomberg and the New York Times reported over the weekend that a deal was expected to be announced as early as Monday. Uber's stock has gained 3.2% year to date through Thursday, while shares of rival Lyft Inc. /zigman2/quotes/208999293/composite LYFT +2.85% has dropped 26.0% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.27% has lost 3.1%.

/zigman2/quotes/211348248/composite
US : U.S.: NYSE
$ 32.27
-0.63 -1.91%
Volume: 21.35M
Aug. 10, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$57.44 billion
Rev. per Employee
N/A
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/zigman2/quotes/208999293/composite
US : U.S.: Nasdaq
$ 31.05
+0.86 +2.85%
Volume: 11.74M
Aug. 10, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$9.26 billion
Rev. per Employee
$450,139
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/zigman2/quotes/210599714/realtime
US : S&P US
3,360.47
+9.19 +0.27%
Volume: 2.57B
Aug. 10, 2020 5:12p
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