Amazon.com acquires Zappos.com

Amazon.com, Inc., an operator of online shopping websites, has acquired Zappos.com, Inc., an online retailer, for approximately $847 million in both stock and cash. Both the companies are based in the US.

Announcement (July 22, 2009):

Amazon has agreed to acquire Zappos. Under the terms of the agreement, Amazon will pay $807 million in Amazon stock to purchase Zappos. It will also give Zappos employees an additional $40 million in cash and restricted stock. Earlier, Sequoia Capital Operations, LLC had invested $35 million in Zappos in different funding rounds. Venture Frogs, LLC, Goldman Sachs & Co. and Nick Swinmurn also invested in Zappos.

Fenwick & West LLP is acting as legal advisor and Morgan Stanley as financial advisor to to Zappos. Gibson, Dunn & Crutcher is acting as legal advisor and Lazard, Ltd. as financial advisor to Amazon.

Deal Value (US$ Million) 847
Deal Type                Acquisition
Sub-Category             100% Acquisition
Deal Status              Completed: 2009-11-02

Deal Participants

Target (Company)   Zappos.com, Inc.
Acquirer (Company) Amazon.com, Inc.
Vendor (Company)   Goldman Sachs & Co.

Deal Rationale

The transaction would allow Amazon.com to add more products and inventory.

Related terms: acquisition, advisor, legal, online, products