Amazon will pay $3.5bn to buy wordpress
The online retail giant Amazon will buy word-processing software provider WordPress, which is currently owned by a group of investors.
The acquisition will be worth $3bn to Amazon, according to people familiar with the transaction.
The deal is expected to close by the end of the year.
The online retailer will pay about $6.4bn in cash for the deal, which has been in the works for some time, people familiar said.
The price tag includes about $2bn in debt, according a person familiar with WordPress’ sale who asked not to be identified because the details are private.
Amazon is looking to expand into more fields of technology, the people said.
Amazon’s deal to acquire WordPress could be an example of how the company is trying to improve its position as a cloud-based service provider by making acquisitions in areas such as cloud storage and advertising.
Amazon already owns online grocery-delivery service FreshDirect and online retailer AmazonFresh.
The company has been aggressively trying to move beyond its traditional online retail business, and is now looking to use the technology to deliver more digital products.
The move to acquire the company comes as it seeks to broaden its reach and expand its reach into areas beyond its core online retail service business, which includes Amazon.com, Amazon.co.uk, Amazon Prime and Amazon Video.