Amazon Is About To Buy Diapers.com For $540 Million

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Photo: AP

The diapers price war is officially over.Amazon has agreed to a $540 million acquisition of Quidsi, the parent of Diapers.com and Soap.com, according to Fortune.

The deal, to be announced on Monday, will bring on Quidsi’s co-founders in a multi-year employment contract. The price tag is $200 million over what Quidsi was valued at in its latest round of venture financing, according to Fortune’s Dan Primack.

As we reported yesterday, the price war that led to this acquisition included aggressive discounting on diapers and related products. Amazon, for example, sells a case of Pampers for $39.  Diapers was selling the same case for $45. It recently introduced Amazon mum, which offers further discounts, cash back, and free shipping.

Diapers.com had countered with price cuts and a cash-back program of its own, but wasn’t able to compete.

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