The Amazon acquisition of Souq.com we reported on last week has been confirmed. The deal is expected to be completed later the year subject to the usual regulatory checks although the price-tag has not been revealed. The general rumour consensus seems to be $650m has changed hands in some form or another.
Launched in 2005, Souq.com offers more than 8.4 million products across 31 categories including consumer electronics, baby items, fashion, health and beauty and household goods. It enjoys more than 45 million visits per month and has operations in Saudi Arabia, the United Arab Emirates and Egypt. As well as being a retailer in its own right, rather like Amazon, it is also a marketplace for third party sellers.
Amazon SVP Russ Grandinetti says: “Amazon and Souq share the same DNA. We’re driven by customers, invention and long-term thinking. Souq.com pioneered ecommerce 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.”
Souq chief executive and co-founder Ronaldo Mouchawar adds: “We are guided by many of the same principles as Amazon, and this acquisition is a critical next step in growing our ecommerce presence on behalf of customers across the region.”
We don’t glean much from the glossy PR quotes but clearly some people made a whole chunk of cash. Let’s see what happens. The Middle East is, and will increasingly become, a significant ecommerce market and Amazon have a habit of following the money. Are you interested in, or already, using Souq?