Amazon entered into a definitive merger agreement June 28 to acquire online pharmacy PillPack for about $1 billion, according to CNBC, though the companies did not disclose an amount.
Here are five things to know about the deal:
1. PillPack markets itself as a "full-service" pharmacy with a 24/7 customer service team. It manages prescription medications for its customers by packaging, organizing and delivering them.
2. Amazon and PillPack expect the deal to close in the second half of 2018. The transaction is subject to regulatory approvals and customary closing conditions.
3. The agreement comes after reports surfaced in April that Walmart was looking to buy PillPack for less than $1 billion. However, Amazon swooped in with a roughly $1 billion offer in cash after Walmart dragged its feet on the deal, sources told CNBC.
4. Reuters Deputy Bureau Chief Thyagaraju Adinarayan tweeted June 28 that Walgreens CEO Stefano Pessina said he was "not particularly worried" when asked about the acquisition.
"Yes, it's a declaration of intent from Amazon," Mr. Pessina told analysts during a quarterly earnings call June 28, according to CNBC. "[But] the pharmacy world is much more complex than the delivery of a certain [pills or] packages."
5. The PillPack deal also comes after Amazon Business, the e-commerce giant's separate business-to-business marketplace, shelved its push to become a major pharmaceutical supplier to large U.S. hospitals and outpatient clinics in April, according to CNBC.
Editor's note: This article was updated June 28 at 12:52 p.m. CT.
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