DoorDash falls after decision to buy Deliveroo, downbeat quarterly profit forecast

Shares of U.S. meal delivery platform DoorDash DASH.O fall 5.3% to $194.48 in trading before the bell

DASH will buy Deliveroo ROO.L in a deal valuing the British rival at about 2.9 billion pounds ($3.86 billion)

The companies rekindled talks last month after DoorDash approached Deliveroo with a 180 pence per share proposal, which was confirmed on Tuesday as the final offer

The acquisition will help DoorDash grow its market share in Europe, competing against Just Eat and Uber Eats

DASH also forecasts second-quarter core profit to be largely below estimates, according to data compiled by LSEG

Separately, co said it would spend about $1.2 billion to buy SevenRooms, a New York City-based hospitality-related software company

As of last close, DASH was up nearly 22% YTD

($1 = 0.7514 pounds)