Amazon.com Inc. (NASDAQ:AMZN) said Wednesday it has agreed to acquire one of the largest online apparel and footwear retailers, Zappos.com Inc., in a stock deal valued at $807 million.
Under the deal, Seattle-based Amazon will acquire all of the outstanding shares and assume Zappos’ options and warrants in exchange for roughly 10 million shares of Amazon common stock, according to a news release. In addition, Amazon will provide Zappos employees with $40 million in cash and restricted stock units. The total value of the deal is based on the average closing price of AMZN shares for the 45 trading days ended July 17.
Amazon said it plans to keep management intact, and the company will operate its brand independently with headquarters in Las Vegas NV. The giant internet retailer expects the Zappos acquisition to close in the fall.
“We are joining forces with Amazon because there is a huge opportunity to utilize each other’s strengths and move even faster towards our vision of delivering happiness to customers, employees and vendors,” said Tony Hsieh, CEO of Zappos. “We will continue to build the Zappos brand and culture in our own unique way, and we believe Amazon is the best partner to help us do this over the long term.”
Amazon shares fell $0.22 (-0.25%) in late NASDAQ trading to $88.79.