Signet Jewelers, the parent company of Kay Jewelers, Zales and Jared, has officially acquired R2Net, the parent company of e-Commerce jewelry retailer James Allen, for $328 million. The acquisition brings a tech-savvy online brand with a heavy Millennial following under the Signet umbrella.
The deal brings together the fourth- and fifth-largest online jewelers in the Internet Retailer 2017 Top 500, which generated a combined total of $651.1 million in e-Commerce sales in 2016. James Allen saw 50% web sales growth in 2016, well above other major industry players such as jewelry distributor Richline Digital (6.4% growth) and Tiffany & Co. (5% growth), according to the report.
The James Allen brand will be retained along with its executive team, with R2Net largely operating as an independent division of Signet under the leadership of Founder and CEO Oded Edelman. Edelman will become Chief Digital Innovation Advisor of Signet, reporting directly to Signet CEO Virginia Drosos and assuming responsibility for driving Signet’s digital innovation strategy.
Under the deal, Signet also acquires R2Net subsidiary Segoma Imaging Technologies, which is responsible for the technology that supports the James Allen e-Commerce site. This technology includes:
360° HD Diamond Display Technology: Every diamond on JamesAllen.com is photographed with 15X or greater magnification in 360° HD, designed to create a viewing experience for consumers that shares the diamond’s quality, shape, cut, color, clarity and sparkle.
The Virtual Vault, an e-Commerce platform that includes more than 150,000 globally sourced diamonds, each displayed in an interactive 360° HD movie. The platform increases the number of diamonds that consumers can view in stores, while enabling store employees to manage inventory simultaneously across the store fleet.
“This strategic acquisition will allow us to accelerate digital innovation and create an engaging and exciting shopping experience, seamlessly integrated across Signet’s physical and online retail platforms,” Drosos said in a statement. “Together with the R2Net team, we believe we can lead transformation in the jewelry sector by digitizing how we engage, communicate and serve consumers whenever and wherever they desire.”
R2Net is expected to contribute approximately $80 million to $90 million to Signet’s revenue in fiscal 2018.