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Investing.com -- Alphabet Inc’s (NASDAQ:GOOGL) Google has reportedly struck a multimillion-pound investment deal with THG Ingenuity, the e-commerce fulfillment and logistics arm that separated from online beauty and nutrition brand owner THG earlier this year.
According to Sky News on Thursday, shareholders in THG Ingenuity were informed this week that Alphabet-owned Google had invested through a structured equity deal.
The investment takes the form of a convertible instrument that could eventually give Google a small direct equity stake in THG Ingenuity at a valuation of $1 billion (£749 million) or more.
This investment is part of a broader partnership between Google Cloud and THG Ingenuity announced on Wednesday. The collaboration aims to combine Google’s generative AI and data analytics products with THG Ingenuity’s logistics capabilities.
The partnership includes listing THG Ingenuity’s services on the Google Cloud marketplace, developing new products using Google Cloud’s Vertex AI and Gemini platforms, and migrating THG Ingenuity’s digital infrastructure to Google Cloud, the report said, citing a statement issued earlier this week.
Maureen Costello, vice-president for UK, Ireland and Sub-Saharan Africa at Google Cloud, said: "By combining Google Cloud’s AI and data expertise with THG Ingenuity’s global commerce and fulfilment capabilities, we are enabling brands to modernise, innovate and create exceptional customer experiences at scale."
The report added that the $1 billion valuation attributed to THG Ingenuity represents roughly a one-times revenue multiple and a 15-times earnings multiple for the current financial year.