Amazon announced that it has reached an agreement to acquire Middle East-based online retailer Souq.com. This will enable Souq.com to continue growing while working with Amazon to bring more products and offerings to customers worldwide. Subject to conditions, the acquisition is expected to close in 2017. Russ Grandinetti, Amazon Senior Vice President, International Consumer, said Souq.com had pioneered e-commerce in the Middle East.
Amazon did not release any details about the price of the acquisition. Reports earlier this month suggested the deal could be valued at as much as USD 650 million.
UAE-based Souq.com was valued at USD 1 billion in its last funding round. The retailer raised USD 275 million, making it the most valuable internet company in the Middle East, according to Standard Chartered, which had invested in the company. Souq.com’s existing investors include Tiger Global Management and South Africa’s Naspers. The firm hired Goldman Sachs Group to find buyers for a stake last year and other interested buyers reportedly included India's Flipkart.
Souq.com claims to be the largest online retail and marketplace platform in the Arab world, featuring more than 8.4 million products across 31 categories. It attracts over 45 million visits per month, with localized operations in Saudi Arabia, the UAE and Egypt.
