Time to Change the Diapers: Amazon Acquires Quidsi for $500M

The large online retailer Amazon.com has recently announced its latest adventure—the acquisition of Quidsi Inc., the parent company of Diapers.com and Soap.com. Diapers.com specializes on selling baby care products online, while Soap.com is an online store of daily essentials. This move is a lucid manifestation of Amazon.com’s intent to capture the consumer market and intensify their customer-centric business model.

“I’m not sure which is more unpleasant—changing diapers, paying too much for them, or running out of them. This acquisition brings together two companies who are committed to providing great prices and fast delivery to parents, making one of the chores of being a parent a little easier and less expensive,” Jeff Bezos, Founder and CEO of Amazon.com, noted in an interview immediately after the announcement of the acquisition proffer.

Quidsi Inc. recently launched another member of the group—the Beautybar.com. Together with this beauty boutique online, three arms of the company will be obtained by Amazon.com. However, Quidsi Inc. will still be continuing operations under their current leadership team.

It seems that Amazon.com has undoubtedly won the pricing war it hailed against Quidsi when the latter refused to sell Diapers.com to former. With Amazon.com pulling down its selling price to almost a quarter lower compared to of Diapers.com, the parent company succumbed to the pressure pounded by the Seattle-based company.

The acquisition is expected to be complete before the year ends. Enclosed in the agreement is a price of $500 million in shares and $45 million existing debt and obligations of Quidsi Inc.