NEW YORK - Amazon.com Inc. agreed to buy Zappos.com Inc., the biggest acquisition in its history, to add more than 1,000 shoe and apparel brands.
Amazon.com will exchange 10 million shares for Zappos.com’s outstanding stock and assume all options and warrants, according to a statement yesterday. The transaction is valued at about $887.9 million, based on Amazon.com’s closing price yesterday. The company will also give Zappos.com employees $40 million in cash and restricted stock.
The purchase will extend Amazon.com’s dominance in the e-commerce market and help fuel growth, according to Fred Moran, an analyst at Benchmark Co. in Boca Raton, Fla.
Closely held Zappos.com made more than $1 billion in gross merchandise sales in 2008, according to its website.
Zappos.com, founded in 1999, employs more than 1,300 people. Zappos.com’s management team will continue to run the business from its Henderson, Nev., headquarters.
