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Amazon acquires PillPack and Ring

Photo Cred: Https://Simplisafe.com/Home-Security-System-Essentials.” Https://Simplisafe.com/Home-Security-System-Essentials.o

by in M&A
September 12, 2018 0 comments

Boston startups have seen a few high profile investments and exits this month. PillPack, an online pharmacy, was acquired by Amazon. As Amazon continues its domination of various markets with its purchase of WholeFoods, it was only a matter of time until they got involved in the prescription drug industry (worth $560 billion in the U.S.). While Amazon initially struggled with securing pharmacy licenses in each state, their acquisition of PillPack will help them overcome that hurdle since the startup is already licensed to ship drugs in all 50 states.

Amazon has also recently acquired Ring, a startup that makes smart doorbells, chimes and security cameras. Apparently the home security market is hot – SimpliSafe, another home security startup based in Boston, sold a majority stake in the company to private equity firm Hellman & Friedman. SimpliSafe CEO Chad Laurans explains that “home security is at an inflection point. Despite the market’s growth, today still only 20% of homes are protected.”

This makes one wonder: how high-potential companies like SimpliSafe compete with giants like Amazon who continue to buy out innovative startups?  

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