The Bundesliga outfit announced the news via social mediay:
Gladbach sporting director Max Eberl commented on the move:
Dahoud has long been linked with a switch to Liverpool, with the Liverpool Echo's James Pearce reporting in February that the Reds were eager to snap him up last summer, only to be knocked back. However, he added it had "all gone very quiet" on that front since.
Eberl also pledged to "reinvest the money" on a "good replacement" for him, while manager Dieter Hecking said Gladbach have "shown in recent years that we can compensate well for losing players of his quality," per the club's official Twitter account.
As reported by ESPN FC's Stefan Buczko, Dahoud has put pen to paper on a five-year deal with BVB.
BT Sports' Archie Rhind-Tutt and Sky Sports' Alex Chaffer gave a run down of his strengths and weaknesses:
The 21-year-old enjoyed a breakout season last year, which brought him to the attention of Europe's more illustrious sides.
Dahoud will be the man to finally replace Ilkay Gundogan in Dortmund's midfield, where he will likely be tasked with forming a partnership with Julian Weigl.
As Squawka Football demonstrated, the Germany under-21 international is joining an array of top young talent at Signal Iduna Park:
Sports journalist Jonas Giaever hailed the club's transfer activity, while Bundesliga writer Lars Pollmann noted the effect his arrival will have on manager Thomas Tuchel:
Dortmund—who have routinely seen their best players poached by Bayern Munich, including the likes of Robert Lewandowski and Mats Hummels—have built a squad that's filled to the brim with ability and potential.
It could take at least two or three years for some of their younger players to reach their best, but if they can also hold on to stars such as Pierre-Emerick Aubameyang, they're set to provide Bayern with a real challenge in the Bundesliga down the line.
Dahoud will no doubt prove to be an outstanding buy.