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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.

Adobe Completes $1.68 Billion Magento Acquisition

Adobe has officially acquired Magento Commerce for $1.68 billion. Adobe will integrate the Magento Commerce Cloud into the Adobe Experience Cloud, creating a single platform for both B2B and B2C customers. “By putting the two companies together we can provide what leading brands want, which is the ability to control and customize and perfect every moment for a customer, to make it personal and make it shoppable,” said Mark Lavelle, CEO of Magento in an interview with Retail TouchPoints. “We bring that shoppable part.”

Rakuten Bolsters Order Pickup With Curbside Acquisition

Rakuten has acquired Curbside, a mobile ordering and pickup startup. With the acquisition, the Tokyo-headquartered company plans to connect retailers and merchants with customers during order ahead and pickup transactions.Additionally, Curbside partners can use the Rakuten network, which includes more than 1 billion customers and merchants. Curbside had previously raised between $40 million and $50 million in a funding round from investors including CVS, Index Ventures, Sutter Hull Ventures, AME Cloud Ventures, Qualcomm Ventures, Chicago Ventures, and others.

Hudson’s Bay Sells Gilt To Rue La La, Vacates Lord & Taylor NYC Flagship Store

Hudson’s Bay Company (HBC), which acquired Gilt Groupe for $250 million only two years ago, agreed to sell the flash sale business to Rue La La for less than $100 million. Gilt, which was once valued at more than $1 billion, has seen its value plummet as much of the enthusiasm tied to flash sales sites continues to wane. Rue La La plans to hire 150 employees to run the Gilt business following the close of the deal, which is expected at the end of July.

PayPal Adds In-Store Solutions With iZettle Acquisition

PayPal will acquire iZettle, a small business commerce platform operating in Europe and Latin America, for $2.2 billion. The deal will combine iZettle’s in-store solutions with PayPal’s global scale and mobile and online payment systems. PayPal will gain in-store capabilities in Brazil, Denmark, Finland, France, Germany, Italy, Mexico, The Netherlands, Norway, Spain and Sweden, where iZettle works with nearly 500,000 merchants. Additionally, the deal will open near-term in-store expansion opportunities in some of PayPal’s other markets, and accelerate the growth of its omnichannel commerce solutions in Australia, the UK and the U.S.

dunnhumby Acquires Apartis, Enhancing Promotion Management Platform

dunnhumby has acquired Apartis Software, an enterprise marketing and promotions management company. The deal is the culmination of a strategic partnership between the companies that embedded dunnhumby customer data science into the Aptaris solution, providing retailers with an end-to-end promotions management platform. The Enterprise Promotions Management platform combines dunnhumby’s customer data science-driven forecasting with Aptaris’ workflow and vendor management services. Retailers can use the platform to drive efficiencies at every stage of promotion management, including providing all the information needed to plan, deliver and measure every promotion within merchant and vendor teams.

RetailMeNot Acquires Drug Price Comparison App

RetailMeNot, a savings destination connecting consumers with retailers, restaurants, and brandshas acquired LowestMed, a web site and app that compares prescription drug prices. The financial terms of the deal were not disclosed.

Canadian Tire Expands International Presence With Helly Hansen Purchase

Canadian Tire Corp. will acquire Helly Hansen for $771.2 million (U.S.), diversifying its offerings with a push into sportswear, according to The Vancouver Sun. The department store retailer has been putting greater emphasis on apparel to attract Millennial shoppers. Helly Hansen operates an e-Commerce site and 57 stores in more than 40 countries, including the U.S. Its sailing, skiing, mountaineering and hiking gear also is sold at retailers such as Nordstrom and REI.

Synchrony Adds Gift Card Alternative With Loop Commerce Acquisition

Synchrony will acquire Loop Commerce, the creator of the GiftNow digital and in-store gifting platform. The deal will diversify Synchrony’s business, broaden its reach and provide more capabilities for its partners. Terms of the deal were not disclosed. GiftNow offers retailers an alternative to the traditional gift card, letting shoppers choose a specific item instead. Retailers can offer any product they stock as a potential gift, and recipients will have the option to change its color, size or even the chosen item before it ships.

Fred’s Sells Specialty Pharmacy Business To CVS After CEO Departs

Fred’s is selling assets of EntrustRx, its specialty pharmacy unit, to a subsidiary of CVS Health for $40 million plus inventory value costs. The move comes more than two weeks after Fred’s CEO Michael K. Bloom resigned from his position. Joseph Anto, EVP, CFO and Secretary at Fred’s, has filled the Interim CEO role since April 24, 2018. Anto said in a statement that the cash proceeds from the sale will help Fred’s pay down a significant portion of its debt, and indicated that monetizing non-core assets is a top priority for the pharmacy in 2018.

Walmart Beats Amazon To $16 Billion Flipkart Deal, Brings E-Commerce Battle To India

UPDATE:  Walmart officially announced it has acquired an initial stake of roughly 77% in Flipkart for approximately $16 billion. The remainder of the business will be held by existing investors, including Flipkart's co-founder Binny Bansal, Tencent, Tiger Global and Microsoft. In a statement, Walmart said it would support Flipkart's transition into a publicly-listed, majority owned subsidiary in the future. “As Flipkart is expected to generate meaningful losses for at least the next few years, this is clearly an investment for the future,” said Charlie O’Shea, VP and Lead Retail Analyst at Moody’s in commentary provided to Retail TouchPoints. “When viewed in tandem with the recently-announced sale of a majority stake in Asda, is indicative of Walmart’s long-standing strategy of shifting resources into higher growth potential markets and segments when opportune.”   A weeks-long tug of war and speculation as to which U.S. retail giant would win out to acquire Indian e-Commerce company Flipkart appears to have been decided. Flipkart’s Board of Directors has reportedly approved Walmart’s $15 billion bid for a roughly 75% stake in the company, outdoing Amazon’s offer for a 60% stake. The deal makes Walmart’s 2016 $3.3 billion acquisition of Jet.com look tiny in comparison, and it well may be…

Birchbox Sells Majority Stake After QVC Deal Falls Through

Nine months after reportedly putting itself up for sale, Birchbox appears to have found a buyer for a majority stake in its business. Viking Global Investors, a hedge fund and prior investor in Birchbox, has invested $15 million into the subscription box retailer, according to a report from Recode. If accurate, the price would undoubtedly be a massive disappointment for Birchbox, which has raised nearly $90 million in total funding since its launch in September 2010. The retailer had a valuation as high as $485 million after its $60 million Series B funding in April 2014, making it clear that the Birchbox brand has since fallen out of favor in the eyes of potential buyers.

Square Acquiring Site Solution Provider For $365 Million

Square has entered into a definitive agreement to acquire Weebly, a web site solution provider, for approximately $365 million. Weebly has more than 625,000 paid subscribers for its premium web site design and hosting, online store and marketing tools. These services will be complemented by the managed payments, hardware and software offered by Square.
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