Amazon has acquired a Middle Eastern retailer that was once valued at $1 billion (AMZN, NPN)

pulse

March 28, 2017 2:43 PM

The value of the deal between Amazon and Souq.com was not disclosed.

Amazon announced on Tuesday that it had agreed to acquire the Dubai, United Arab Emirates-based online retailer Souq.com.

The acquisition represents Amazon's first move into serving the Middle East, which is home to over 200 million people.

The value of the deal was not disclosed, but Souq.com was valued at about $1 billion (£800 million) in its most recent funding round.

Several publications reported that the deal was coming last week. TechCrunch cited sources saying the deal was worth $650 million (£517 million).

Amazon said it expected the acquisition to close by the end of the year.

Russ Grandinetti, the senior vice president of Amazon's international consumer business, said in a statement: "Amazon and Souq.com share the same DNA — we're both driven by customers, invention, and long-term thinking."

He added: "Souq.com pioneered e-commerce in the Middle East, creating a great shopping experience for their customers. We're looking forward to both learning from and supporting them with Amazon technology and global resources. And together, we'll work hard to provide the best possible service for millions of customers in the Middle East."

Souq.com's cofounder and CEO, Syrian-born entrepreneur Ronaldo Mouchawar, added: "By becoming part of the Amazon family, we'll be able to vastly expand our delivery capabilities and customer selection much faster, as well as continue Amazon's great track record of empowering sellers."

Souq.com is the largest online retail platform in the Arab world, according to CNBC.

(Reporting by Alexander Cornwell; Editing by Greg Mahlich)

pulse