Big Investment from Google to THG Ingenuity!

Alphabet Inc’s (NASDAQ:GOOGL) Google has signed a multi-million dollar investment agreement with e-commerce logistics firm THG Ingenuity. THG Ingenuity is a department that became independent from THG earlier this year.

According to a report by Sky News, the shareholders of THG Ingenuity were informed this week that Google has invested through a structured stock agreement. This investment is in the form of a convertible instrument that provides Google with the opportunity to obtain a small direct stake in THG Ingenuity, and is valued at $1 billion (£749 million) or more.

This investment is part of a broader partnership between Google Cloud and THG Ingenuity. Announced on Wednesday, this collaboration aims to combine Google’s generative artificial intelligence and data analytics products with THG Ingenuity’s logistics capabilities.

As part of the partnership, THG Ingenuity’s services will be featured in the Google Cloud marketplace, new products will be developed using Google Cloud’s Vertex AI and Gemini platforms, and digital infrastructure will be migrated to Google Cloud. This information is based on a statement released earlier this week.

The Vice President of Google Cloud for the UK, Ireland, and Sub-Saharan Africa, Maureen Costello, stated, "We are enabling brands to modernize, innovate, and deliver scalable exceptional customer experiences by combining Google Cloud’s artificial intelligence and data expertise with THG Ingenuity’s global commerce and fulfillment capabilities."

According to the report, the $1 billion valuation attributed to THG Ingenuity represents approximately one times revenue and 15 times earnings multiple for the current fiscal year.