Fortune is reporting that Amazon is acquiring Quidsi, the parent company of Diapers.com and Soap.com, in a $540 million acquisition. This is a cash deal, and the founders of Quidsi have been reportedly signed to employment contracts by Amazon.
I think this is a very smart move by Amazon, and it follows the company’s acquisition of online retailer Zappos, which was announced about 15 months ago. The two companies have continued to run separately after that acquisition, and I would imagine Amazon will continue to leverage the Diapers.com and Soap.com brands as separate business entities.
It was just a few months ago (in July of 2010) that Quidsi launched Soap.com. At that time, it was reported that Diapers.com had revenue of over $300 million annually.
As I mentioned previously, Quidsi’s business model seems very similar to TABcom, LLC (known before as PetsUnited), the $100 million+ company that operates Dog.com, Horse.com, Garden.com, Fish.com, and many more e-commerce websites on generic domain names. I wonder if Amazon will give Alex Tabibi a call in the near future.