The big drugstore chain Walgreens is buying the online drugstore Drugstore.com for $409 million in cash, Dealbook reports.
Walgreens has been trying to strengthen its offering in e-commerce and mobile commerce so this makes sense.
The deal is a hefty premium over the stock price, but it still seems an OK value at less than 1X last year’s sales of $456 million, when the company had negative profits.
Presumably Walgreens thinks by combining Drugstore.com with their operations they can increase economies of scale and wring profit out of them. If that works out, it seems like a deal that makes sense for everyone.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.