Amazon.com, Inc. (NASDAQ:AMZN) has agreed to acquire SOUQ.com, an e-commerce giant in the Middle East.
On Tuesday, Amazon announced that it has signed an agreement to buy SOUQ.com, often described as the Amazon of the Middle East.
The U.S. online retailing giant said that joining Amazon would allow SOUQ.com to continue growing and bringing more products and offerings to customers worldwide.
The acquisition will allow Amazon.com, Inc. (NASDAQ:AMZN) to reach millions of customers in the Middle East.
“SOUQ.com pioneered e-commerce in the Middle East,” said Russ Grandinetti, senior vice president of international consumer at Amazon.
Grandinetti added that both companies “share the same DNA – we’re both driven by customers, invention, and long-term thinking.”
“We are guided by many of the same principles as Amazon, and this acquisition is a critical next step in growing our e-commerce presence on behalf of customers across the region,” SOUQ.com CEO and Co-Founder Ronaldo Mouchawar said in a statement.
“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,” Mouchawar added.
Financial terms of the deal were not disclosed.
The acquisition is expected to close sometime in 2017, subject to certain conditions.
Souq.com is the largest e-commerce store in the Arab world, available in both English and Arabic languages.
Founded in 2005 by Ronaldo Mouchawar, more than 24 million users visit Souq.com every month.
In 2011, Souq.com changed its model from an auction site to an online shopping store similar to Amazon. The website offers a marketplace and retail items for sale.
Souq.com delivers to the United Arab Emirates, Saudi Arabia, Kuwait, Egypt, Bahrain, Oman, and Qatar. It operates semi-automated modern fulfillment centers in the United Arab Emirates, Saudi Arabia, Kuwait, and Egypt. It has more than 2,000 employees in engineering, retail, customer support, fulfillment and last mile delivery departements.
Meanwhile, shares of Amazon.com, Inc. (NASDAQ:AMZN) are up nearly 14% for the year. The stock has increased by more than 47% during the last 12 months. On Tuesday, shares were trading up 0.91% to $854.51.