Amazon and PillPack today announced that they have entered into a definitive merger agreement under which Amazon will acquire PillPack. The deal amount has not been disclosed by Amazon, but sources close to the deal say it was for just under $1 billion.
PillPack had reportedly been in talks with one of Amazon’s big rivals, Walmart, for an acquisition, but now it seems Amazon came along with a better offer.
PillPack is a pharmacy designed to provide the best possible customer experience in the U.S. for people who take multiple daily prescriptions. It delivers medications in pre-sorted dose packaging, coordinates refills and renewals, and makes sure shipments are sent on time. The Boston-based company which has raised $123 million from investors and venture funds since its launch in 2013, operates in all 50 US states.
“PillPack’s visionary team has a combination of deep pharmacy experience and a focus on technology,” says Jeff Wilke, Amazon CEO Worldwide Consumer. “PillPack is meaningfully improving its customers’ lives, and we want to help them continue making it easy for people to save time, simplify their lives, and feel healthier. We’re excited to see what we can do together on behalf of customers over time.”
“PillPack makes it simple for any customer to take the right medication at the right time, and feel healthier,” said TJ Parker, co-founder and CEO of PillPack. “Together with Amazon, we are eager to continue working with partners across the healthcare industry to help people throughout the U.S. who can benefit from a better pharmacy experience.”
Post acquisition, TJ Parker, co-founder and CEO of PillPack, will be staying on to run the business. The deal is expected to be closed by the second half of 2018.
Last year, Amazon had acquired Whole Foods grocery chain and started offering discounts to consumers who are members of its Prime subscription service.