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Amazon is buying Zoox in USD 1bn deal: the Information
Posted on Friday, 26 June 2020 09:32
Online marketplace giant Amazon has agreed to pick up Zoox, an early developer of autonomous vehicles, in a deal that could be worth around USD 1.00 billion, the Information reported, citing people with knowledge of the deal.
According to the sources, an announcement could be made as soon as Friday and would expand the e-commerce giant’s reach in self-driving car technology.
The deal would give Amazon control of a nearly 1,000-person startup that has already designed a prototype vehicle to transport passengers in urban areas, the Information reported.
Insiders did not disclose whether the buyer also intends to use Zoox to automate vehicles that deliver goods to customers.
Amazon has already begun experimenting with such technologies, from package-toting robots that travel on sidewalks to drones that can make deliveries to consumers from the air.
The Information observed that the majority of Zoox’s investors will receive their money back with some making a positive return.
Last month, the Wall Street Journal cited people close to the situation as saying the two groups are in advanced talks in a deal that would be worth less than the USD 3.20 billion valuation the target received in 2018.
At the time, California-based Zoox completed a series B round of funding raising USD 500.00 million from GrokVentures.
Amazon has stepped up its investment in the car sector, participating in a USD 530.00 million funding round early last year in self-driving car startup Aurora Innovation.
In the three months ended 31st March 2020, the online retailer posted net sales of USD 75.45 billion, up 26.4 per cent from USD 59.70 billion in the corresponding period of 2019.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 107 deals targeting automobile manufacturers announced worldwide in 2020 to date.
Among these companies were Chinese electric car maker NIO (Anhui) Holding, US-based autonomous automotive vehicle group Waymo and electric vehicle giant Tesla.
© Zephus Ltd