Liberty Interactive Corporation, the parent company of home shopping network QVC, has acquired e-Commerce daily deal site zulily for approximately $2.4 billion. The transaction is expected to be completed in Q4 2015, subject to regulatory approval. Together, QVC and zulily represent combined annual revenues of more than $10 billion, global shipments of 230 million units and a total of 19 million customers across 85 countries.
Zulily, which launched in 2010, sells maternity gear, baby clothes and other products aimed at Millennial mothers. With the acquisition, zulily and QVC Group are positioned to extend their businesses beyond their respective core audiences. For example, QVC will be able to more effectively reach young mothers who love to shop. Because zulily has such a substantial mobile strategy, the company also will be able to accelerate its mobile leadership.
“Together, we will further engage modern women who love to shop in new and compelling ways,” said Mike George, President and CEO of QVC. “We look forward to welcoming the talented zulily team to the QVC Group as our shared values and beliefs create an incredibly strong foundation for us to collaborate across all aspects of the business and transform how we serve customers in new, digital-first ways.”
Once the transaction is finalized, both businesses will be able to expand their product lines, brand portfolios and vendor networks in an effort to extend new experiences and value to their customers.
Through zulily, QVC will have access to additional platforms to market its assorted products such as the eTailer’s Today’s Special Value promotion and exclusive proprietary brands. On the other hand, QVC’s resources in categories such as Beauty, Home Decor and Apparel Special Sizes will enable zulily to expand its category offerings, and expose customers to a distinctive shopping experience through joint on-air and online programming events.
QVC will leverage zulily technologies that leverage historical and real-time data to customize offers and experiences. The retailer also may use zulily’s digital content production system in the future. Meanwhile, zulily will have access to QVC’s video expertise and customer finance systems, which are designed to enhance the shopping experience and unlock incremental demand on retail platforms.
Following the close of the transaction, QVC and zulily will operate under a management structure that enables each company to remain focused on its respective business, yet facilitates close collaboration to drive benefits across the combined organization. The companies will continue to maintain their distinctive brand identities after the transaction, according to a statement.
Darrell Cavens will continue to serve as President and CEO of zulily, and the entire zulily senior management team will remain in place. Mark Vadon, Chairman and Co-Founder of zulily, will join the Board of Liberty Interactive and provide strategic counsel and support to the companies.