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Amazon to pay US$500 million cash for Diapers.com owner

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Amazon.com plans to acquire Quidsi, the operator of Diapers.com and Soap.com, for US$500 million in cash to expand into baby care products and goods for everyday needs.

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The online retailer will also assume $45 million in debt from Quidsi, according to a statement from Amazon.

"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," said Jeff Bezos, founder and CEO of Amazon, in a statement.

The management team at Quidsi will continue to run the sites and operate them independently, Amazon said.

The deal has already been approved by Quidsi shareholders. It is expected to be finalized in December.

Amazon will also take ownership of BeautyBar.com, a new site recently launched by Quidsi as a beauty boutique.

The acquisition appears to be an extension of Amazon's strategy to expand by buying online retailers in areas in which its expertise is limited.

Last year, Amazon bought Zappos.com, an apparel and shoe retailer, in a deal ultimately valued at $1.2 billion. Earlier this year, Amazon said it would acquire Woot.com, a deal-making website popularized by its deal-of-the-day strategy. This time around, it has strengthened its position in baby products, everyday household goods, and beauty products.


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