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Amazon invests more than $2,000M to buy companies in 2018


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Integral service around a transaction
BY : Diego GutiérrezFebruary Tue, 2019

We analyse the most recent operations of the giant Amazon in purchase of companies. The company, both through its core business and other divisions such as Amazon Pay and Amazon Web Services, has invested more than $2 billion in 2018.

Amazon: Pionera en venta de bienes a través de Internet

Amazon invests more than $2,000M to buy companies in 2018

Amazon was founded in 1994 and is based in Seattle, Washington. As we all know, we are talking about an e-commerce retailer that was originally created to offer consumers products via the web. Its impact was so high because it was one of the most important first major companies to sell goods over the Internet.

También permite a los autores, músicos, cineastas, desarrolladores de aplicaciones y otros publicar y vender contenido a través de sus sitios web de marca. Amazon también proporciona Kindle Direct Publishing, una plataforma en línea que permite a los autores y editores independientes que sus libros estén disponibles en la Tienda Kindle.

In addition, it provides credit card agreements and co-branded advertising services, serves developers and businesses through Amazon Web Services and manufactures and sells electronic devices.

It is estimated that the company revenues of around 208.1 billion dollars per year. In terms of 2019, Amazon could invest as much as $3.2 billion in IT.

Buying companies in 2018

El año pasado nuestros expertos en Corporate Finance realizaron un análisis de las adquisiciones que había confirmado Amazon desde el 2015 hasta el 2017. Pudimos comprobar que la compañía compró 17 empresas, siendo la más destaca the purchase of Whole Foods for 13.7 billion dollars..

En este 2018, sin embargo, Amazon no ha sido tan activa en compra de empresas como en otras fechas. Hemos recopilado las cuatro inversiones que ha confirmado la compañía estadounidense y que analizamos a continuación:

1. PillPack

Amazon anunció el 28 de junio la adquisición de PillPack, una online pharmacy which allows users to buy drugs in pre-made doses. Amazon has not disclosed the terms of the deal, but sources close to the deal say it was for just under $1 billion.

PillPack had reportedly been in talks with Walmart, one of Amazon's big rivals. But Amazon apparently ended up making a higher offer.

This movement points out how the e-health market is heating upand also how Amazon sees it as a key frontier in its attempt to be the reference for any consumer or medical organisation.

2. Ring

Ring fue fundada en 2012 y tiene su sede en Santa Mónica, California. Se trata de una domestic security company which offers homeowners a line of security buzzers and outdoor security cameras. Its mission is to reduce crime in neighbourhoods and empower consumers by creating a "ring of security" around homes and communities.

El 12 de abril se completó la venta de Ring a Amazon. Fue una operación que comenzó el 27 de febrero de 2018 y que was valued at USD 1 billion..

Ring's video doorbell has been effective in reducing neighbourhood burglaries by as much as 55%, according to an LAPD pilot programme. Now, with Amazon's goal of offering premium products at non-premium prices, the two companies can help make home peace of mind a reality for more neighbours than ever before.

"Together with Amazon, we will dramatically accelerate our mission by connecting more neighbours around the world and making our security devices and systems more affordable and accessible," said Jamie Siminoff, CEO of Ring.

3. Sqrrl

Sqrrl es una empresa de Big Data analysis which enables organisations to identify and react to unusual activity by automatically discovering hidden connections in their data. With Sqrrl's cyber security solution, users can detect and respond to advanced data breaches associated with cyber espionage activity, insider threats and other types of hard-to-detect attacks.

On 23 January we learned of the purchase of this company by one of the group's companies, Amazon Web Services (AWS). The amounts of the transaction were not disclosed.

Fears about cloud security have long been an existential problem for cloud computing companies, despite the fact that most security experts believe that cloud companies are not able to protect themselves from the threat of security breaches. are much better at placing their workloads within companies such as AWS.

 

4. Tapzo

Finally, we look at the purchase made by Amazon Pay. Its target was the Indian company Tapzo, All in One" application for high frequency use cases. It aggregates a number of app-based services such as Uber, Ola, the food delivery services Swiggy and Zomato, Book My Show or the bill payment service BillDesk into a single app.

In the immediate aftermath of Google rebranding Tez to Google Pay in India, and Walmart acquiring a majority stake in e-commerce marketplace Flipkart, Amazon also moved into India's growing economy.

On 28 August the operation was confirmed and valued at around $40 million.

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