Amazon is making its first acquisition of the year, and the retailer is making it with Whole Food.
The company announced Wednesday that it will acquire Whole Foods for $1.5 billion in cash and stock.
The deal is expected to close in the second half of 2018, according to The Wall Street Journal.
The news comes less than a week after Amazon agreed to buy Whole Foods’ grocery delivery service and its grocery delivery division.
The two companies announced they will work together to develop new products, like AmazonFresh, a service that will allow shoppers to shop and pickup goods from multiple retailers.
Amazon announced that it plans to open a store in Seattle, but has not announced a specific location.
“We’ve been very focused on making this an Amazon-like experience for consumers,” Jeff Bezos, Amazon’s CEO, said in a statement.
“This acquisition will give us a great platform for delivering products to our customers, and it will give AmazonFresh a chance to get the attention it deserves in the marketplace.”
AmazonFresh is a free service that Amazon has been testing for the past few months, and its success in selling groceries is something that Whole Foods has been looking for.
The acquisition will create a new distribution channel for Whole Foods, which has been struggling to find ways to sell its goods online.
The combined company, called AmazonFresh Prime, will focus on delivering groceries to Amazon’s customers.
Amazon says the deal is a “major milestone” for Whole Food, which also sells its own grocery products and is looking to expand into other food and lifestyle categories.
Whole Foods shares are up more than 10% this year.
Amazon’s acquisition of Whole Foods is a huge deal for Amazon, which is already worth more than $400 billion.
Its stock has jumped more than 600% since it was announced last week.