Mergers & Acquisitions

It’s not easy to stay on top of the latest company realignments in the retail industry. It’s a volatile environment — across retailer segments as well as solution provider organizations. As soon as the announcements are made, Retail TouchPoints publishes an article covering the news, in this Mergers & Acquisitions section. Learn about the latest developments here.

STRATACACHE Acquires Fellow Signage Provider Real Digital Media

STRATACACHE has acquired Real Digital Media for an undisclosed sum, marking the second time the brand has integrated an industry competitor in six months. In August, STRATACACHE acquired supermajority control of rival provider Scala. The move is the latest in STRATACACHE’s efforts to reach $1 billion in revenue by 2020, and hire more than 250 people during that time.

Alibaba Offers $2.6 Billion For Chinese Department Store Intime

  • Published in News Briefs
As Walmart continues to set itself up to compete with Alibaba on its home turf of China both online and offline, the e-Commerce giant has taken a big step into the physical world. Alibaba has made a $2.6 billion offer to fully acquire Intime and take the department store and…

Gildan Wins American Apparel Auction With $88 Million Bid

Although Amazon and Forever 21 both reportedly showed interest in bidding on American Apparel during its bankruptcy auction, Canadian apparel manufacturer Gildan Activewear won the rights to the brand after raising its offer to $88 million. Gildan will not take on any of American Apparel's 110 stores, but will own its intellectual property and assume some of its manufacturing operations in California, according to Reuters. American Apparel will need to find a separate buyer to take over the stores in order for them to remain open.

Yahoo Trims Board As It Preps For Verizon Acquisition

The feel-good 1990s dotcom era is truly over. Verizon, which purchased AOL in 2015, has agreed to pay $4.83 billion for Yahoo. But not all of the once-dominant web portal and search pioneer is going to Verizon — if it goes at all. The terms of the deal could be amended — or the transaction may even be called off — after Yahoo's disclosure of two separate data breaches last year. One involved some 500 million customer accounts and the second involved more than a billion. On top of that, it was revealed that Yahoo helped the U.S. government in a massive spying operation that allowed it to search everyone’s email for specific terrorism-related content. Verizon said it would "evaluate" the potential impact on the deal, according to Fortune. Under the proposed transaction, Verizon is acquiring Yahoo's operating business. Yahoo's remaining business, which consists primarily of its stake in the Chinese e-Commerce titan Alibaba and its partnership in Yahoo Japan, will continue to exist as a separate company named Altaba, a combination of the words "alternate" and "Alibaba," according to the Wall Street Journal.

Walmart Purchases ShoeBuy For $70 Million

Walmart has purchased the online footwear retailer ShoeBuy for approximately $70 million, in a move aimed at helping its subsidiary offer shoppers a larger selection of shoes and sneakers. Walmart, under enormous competitive pressure from e-Commerce titan Amazon, has been moving aggressively over the last few months to expand its digital reach. ShoeBuy CEO Mike Sorabella, his executive team, and ShoeBuy’s 200-plus employees will continue to be based in Boston.  ShoeBuy — which became one of the first companies to sell shoes online around the same time that Zappos (acquired by Amazon in 2009 for $847 million) launched — carries more than 800 brands and over one million items, including footwear for women, men and kids, as well as clothing and accessories such as outerwear and handbags.

Kate Spade And Nasty Gal Ring In 2017 With Sale Speculation

  • Published in News Briefs
In an increasingly difficult environment for luxury brands, Kate Spade is exploring a potential sale at the behest of an activist investor, according to The Wall Street Journal. The brand, which currently has a market value of approximately $2.3 billion, plans to kick off a formal auction process for the…

ThreeSixty Group Buys Sharper Image Brand For $100 Million

Following its purchase of the FAO Schwarz brand from Toys "R" Us in October 2016, ThreeSixty Group has snapped up another historic brand, The Sharper Image, for $100 million. ThreeSixty Group has been licensing Sharper Image products from owner Iconix Brand Group since 2008, the year the retailer declared bankruptcy and began closing stores. In connection with the acquisition, ThreeSixty will establish a brands division to support the development and expansion of both the Sharper Image and FAO Schwarz brands. The division will manage overall brand marketing and business development strategies for these iconic names as well as future acquired brands.

TDK To Acquire Chip Maker InvenSense For $1.3 Billion

Japanese component manufacturer TDK Corporation has entered into a definitive agreement to acquire all outstanding shares in U.S. chip maker — and Apple supplier — InvenSense. TDK will acquire all of the outstanding InvenSense shares for cash at an acquisition price of $13 per share, for a total acquisition value of $1.3 billion.  The deal has been unanimously approved by the boards of directors of both companies but the transaction isn’t expected to be completed until the second quarter of the fiscal year ending March 31, 2018. Approvals from InvenSense’s shareholders and relevant regulatory authorities are also required. The acquisition will be completed through a merger of a newly created subsidiary of TDK with InvenSense, which will continue as a wholly-owned subsidiary of TDK. "TDK's sensor business, one of its strategic growth areas, can be strengthened by merging TDK's portfolio of magnetic sensor technologies (where its strength lies) and its wide range of sensor products with InvenSense's expanding sensor technology," said Shigenao Ishiguro, President and CEO of TDK in a statement. “This acquisition is a fundamental element in TDK's strategy to provide unique and high-value-added products and services in IoT. We aim to become a strong player in the sensor…

Fred's Pharmacy To Buy 865 Rite Aid Stores For $950 Million

In a move that may speed up the long-planned $17.2 billion acquisition of Rite Aid by Walgreens Boots Alliance, Fred's Pharmacy has agreed to buy 865 Rite Aid stores in the eastern and western U.S. for $950 million in cash. The transaction is expected to close several months after the Rite Aid acquisition is completed, and is subject to Federal Trade Commission and other regulatory approvals. Walgreens had acknowledged in September 2016 that it would likely need to divest itself of 500 to 1,000 stores in order to ease regulators' concerns. With the acquisition of the Rite Aid stores, Fred's will become the third-largest drugstore chain in the U.S., creating a new national competitor to rival not just Walgreens and Rite Aid but CVS Health as well.

Akamai Acquisition Improves Cyberbot Detection Capabilities

Akamai has acquired Cyberfend, a California-based startup specializing in bot and automation detection software, to bolster its security capabilities. Financial terms of the all-cash deal were not revealed.  Upon completing the Cyberfend acquisition, Akamai plans to extend the capabilities of the Bot Manager software it launched earlier this year. It plans to offer online businesses the technology required to effectively distinguish between real customers and attackers, thus limiting attackers' ability to avoid detection. Akamai hopes that by acquiring Cyberfend it can help prevent growing credential theft and abuse issues for online businesses and their customers. “The addition of Cyberfend’s technology is intended to give our customers a better way to spot and stop credential abuse on their sites — benefiting both the online business and its users,” said Stuart Scholly, SVP and GM of Web Security for Akamai in a statement.

Staples Sells Majority Stake In European Business

Staples is selling a controlling interest in its European operations to an affiliate of private investment firm Cerberus Capital Management for $53.6 million, as the struggling office supplies retailer continues to shift focus to its North American business. Under a licensing agreement with Staples, the separate, privately held company will still operate under the Staples banner name and other sub-brands in European markets. Its associates will continue to be employees of Staples Europe, which will maintain its headquarters in Amsterdam.

Shopify Acquires Tiny Hearts To Broaden Mobile Offerings

E-Commerce solution provider Shopify has acquired Tiny Hearts, a digital product studio and creator of consumer-facing apps such as Quick Fit, Next Keyboard and Wake Alarm. The acquisition will include the company’s apps, online store and brand, called Busy Building Things.

Supervalu Officially Sells Off Save-A-Lot For $1.4 Billion

Supervalu has finalized the sale of its discount grocery brand Save-A-Lot to an affiliate of private equity firm Onex Corporation for $1.365 billion in cash, earlier than the initially anticipated closure date of Jan. 31, 2017. Upon the closing, Supervalu will continue providing back office services to Save-A-Lot as part of a five-year professional services agreement. The supermarket confirmed that it has used $750 million of the net proceeds from the sale to prepay a portion of its outstanding term loan balance. The company plans to use the remaining proceeds to further reduce debt, improve its capital structure, contribute to its pension plan and fund corporate and growth initiatives.

Albertsons In Talks To Acquire Price Chopper For $1 Billion

Mega-grocer Albertsons is in advanced talks to acquire New York-based supermarket chain Price Chopper for as much as $1 billion, according to a report from Reuters. Neither retailer has yet commented officially on the matter. In a sector that has experienced significant consolidation in recent years, with major European supermarket conglomerates Ahold and Delhaize completing their merger in 2016 and Albertsons’ parent company Cerberus Capital Management acquiring Safeway for $9 billion to start 2015, regional brands such as Price Chopper are battling more competition from Walmart and discount chains such as Aldi (and likely future U.S. entrant Lidl).

Bed Bath & Beyond Acquires PersonalizationMall For $190 Million

Continuing the trend of expanding its e-Commerce capabilities via acquisition, Bed Bath & Beyond has purchased PersonalizationMall for approximately $190 million in cash. The 18-year-old e-Tailer specializes in customizing products, with a vertically integrated e-Commerce platform that includes an automated personalization process and rapid order fulfillment. The PersonalizationMall purchase is Bed Bath & Beyond's third acquisition in the past 18 months. The retailer snapped up home furnishings flash sale site One Kings Lane in June 2016 and fashion and home goods retailer Of a Kind in August 2015.
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