Tech giant Amazon buys $4.7B computer lab, $5B computer repair company
AUSTIN — Tech giant U.S. tech giant Amazon has bought a $4 billion computer lab and a $5 billion computer repair business that specialize in computer equipment and repair services.
The deal announced Monday night by Amazon Technologies, Inc. will create a global network of data centers that will help Amazon meet growing demand for computer hardware, software and services.
The company plans to use the facilities to help Amazon fulfill customer needs.
Amazon CEO Jeff Bezos said in a statement that the new company will be “building an array of software solutions that support our cloud services.”
It’s the largest purchase in Amazon’s history, surpassing its purchase of the Boston Globe newspaper in 2012.
Amazon’s move comes as the company faces mounting pressure to move away from traditional brick-and-mortar stores and to become more digitally-oriented.
The company recently launched a new Amazon Prime service that lets customers pay for items with cash and with Amazon credit card, though it has yet to launch a service for customers to purchase physical products like TVs, computers or printers.
Amazon is a major player in the consumer electronics industry and has long been a proponent of a cloud-based cloud computing platform called Amazon Web Services.
Amazon’s cloud computing service is expected to generate $5.6 trillion in annual revenue by 2020.
The value of Amazon Web services is expected grow from $7.2 trillion to $10.9 trillion by 2020, according to an estimate from market research firm CB Insights.