DUBAI (Reuters) - At least some of the proceeds from the sale of Souq.com to Amazon.com will be invested back in the business, the co-founder of the Middle East online retailer said on Tuesday.
Amazon and Souq.com announced earlier on Tuesday they had agreed to the takeover deal. Souq.com’s current shareholders include South Africa’s Naspers Ltd and Tiger Global Management.
“Today is a great day for the company. We are a company of builders. We’ve been on this journey for the last ten years and today (the) partnership with Amazon is an incredible and a great success story for the region,” Souq.com Co-Founder Ronaldo Mouchawar told Reuters.
Mouchawar, who will continue with the company, also said Souq.com would expand its more than 3,000-strong workforce following the deal.
The value and terms of the agreement, which deal adviser Goldman Sachs called “the biggest-ever technology M&A transaction in the Arab world”, were not disclosed.
Mouchawar declined to comment on the valuation.
Reporting by Alexander Cornwell Editing by Hadeel Al Sayegh and Mark Potter