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.

Trax Acquires Shopping Rewards App Shopkick

Trax, a Singapore-based computer vision and analytics solution for retail, has acquired Shopkick, a shopping rewards app, with the goal of uniting the mobile and physical retail worlds for global and regional retailers. Terms of the deal were not disclosed. With the acquisition, Trax aims to gain a better understanding of consumers’ online and offline shopping habits, through the integration of Trax technologies and Shopkick’s path-to-purchase offerings.

Vera Bradley Acquires Majority Ownership In Pura Vida

Vera Bradley has signed an agreement to acquire a 75% interest in Creative Genius, Inc., the owner of Pura Vida, a California-based digitally native lifestyle brand that sells handmade bracelets and other jewelry. With the acquisition, Pura Vida will receive a cash consideration of $75 million, which will be subject to certain price adjustments, and up to $22.5 million as a bonus if the company reaches certain performance-based targets by the end of 2019. The transaction is expected to close in Q2 of Vera Bradley’s fiscal 2020, and the Indiana-based handbag and luggage company has the right to acquire the remaining 25% stake in Pura Vida five years post-closing. “The acquisition of Pura Vida is a terrific fit for Vera Bradley as we move into Year Two of our Vision 20/20 strategic plan and focus on growth,” said Robert Wallstrom, CEO of Pura Vida in a statement. “As we pursue ways to increase revenues, grow shareholder value, expand our customer community, and diversify the business, Pura Vida will be a great addition to our portfolio.” Vera Bradley and Pura Vida both have customer bases of loyal, multi-generational females and are positioned as “gifting,” socially connected brands that focus on community,…

Crate And Barrel Acquires San Francisco-Based Home Décor Retailer

Crate and Barrel has bought Hudson Grace, a San Francisco-based boutique home décor and gift brand that operates five California stores and one Atlanta location, for an undisclosed sum. As part of the acquisition, Crate and Barrel plans to grow the Hudson Grace brand by expanding it into niche markets. With more than 47% of its sales coming through online channels, Crate and Barrel also wants to leverage its digital capabilities to grow Hudson Grace’s developing e-Commerce business.

Salesforce Acquires Big Data Firm Tableau For $15.7 Billion

Salesforce has agreed to acquire data visualization platform provider Tableau in an all-stock transaction valued at $15.7 billion, making it the largest acquisition in the company’s history and combining one of the biggest CRM players with a major big data analytics platform. The purchase is a clear indicator that Salesforce is seeking to offer more data insights to its clients, with a company statement placing a heavy emphasis on “driving digital transformation” across businesses in. With today’s retailers continually having to adapt to changing consumer preferences and developing a sharper focus on understanding data from all points of the shopper journey, Salesforce is looking to marry the concepts of CRM and big data even further.

Payment Power Players Combine In $21.5 Billion Deal

Global Payments, an international provider of payment technology and software solutions, will merge with payments provider TSYS in an all-stock merger of equals valued at $21.5 billion. The combined company, to be called Global Payments, will provide payments and software solutions to approximately 3.5 million predominantly small- and mid-sized merchants and 1,300+ financial institutions across more than 100 countries. The merger will allow TSYS to expand Global Payments’ e-Commerce and omnichannel solutions presence in the U.S., and provide further opportunities for multinational omnichannel market share gains. Additionally, Global Payments will have exposure to some of the fastest-growing digital payments trends through the TSYS issuer and consumer solutions businesses.

Zebra Technologies Will Acquire Profitect

Zebra Technologies, a manufacturer and seller of enterprise visibility and data capture solutions such as rugged handhelds, barcode and RFID readers, is acquiring prescriptive analytics firm Profitect for an undisclosed sum. Zebra will leverage the acquisition of Profitect’s technology, talent, and skillsets to accelerate the development of its Savanna data platform and extend its Intelligent Edge Solutions portfolio. The Profitect core platform is designed to analyze data from across the value chain to help brands improve inventory and pricing accuracy and reduce out of stocks, supply chain inefficiency, unsellable merchandise and assortment discrepancies.

Two Paths To Innovation: Kroger Debuts Investment Firm For Brands; Lowe’s Acquires Analytics Tech

Two of the biggest traditional players in U.S. retail, Lowe’s and Kroger, have each made major pushes in the past year to ensure they are keeping up with major industry innovators. But this week these retailers made even bigger splashes, with Kroger launching an accelerator fund for consumer brands and Lowe’s acquiring retail analytics technology from Boomerang Commerce. Kroger has partnered with Lindsay Goldberg, a private equity firm, to form PearlRock Partners, a platform designed to identify, invest in and help grow emerging consumer product brands.

Chico’s FAS Rejects Second Buyout Proposal From Sycamore Partners

The Board of Directors of Chico’s FAS, parent company of Chico’s, White House Black Market and Soma, has rejected an acquisition proposal from private equity firm Sycamore Partners for the second time in a month. In the latest proposal, Sycamore said it sought to buy Chico’s FAS for $3.50 per share in cash, or approximately $407.8 million. David Walker, Chico’s FAS Board Chair, described the offer in a statement as “inadequate.” The latest offer was actually less than the initial proposal from Sycamore, which was for $4.30 per share. The proposed $3.50 price comes in nearly 8% below the company’s $3.85 per share stock price as of May 17, 2019.

TrueCommerce Acquires Supply Chain Management Platform Provider ecUtopia

TrueCommerce has acquired fellow cloud-based supply chain collaboration and visibility platform ecUtopia for an undisclosed sum. With the acquisition, TrueCommerce gains a strategic technology service that strengthens its commerce network in several market segments, specifically home furnishings and apparel. The TrueCommerce solutions are designed to help retailers connect their business across the supply chain under one global network, integrating processes including Electronic Data Interchange (EDI), inventory management and fulfillment, as well as e-Commerce hubs such as digital storefronts and marketplaces.

Schick Parent Buys Harry’s For $1.37 Billion

Harry’s has grown its direct-to-consumer (DTC) grooming brand via disruptive methods such as a subscription model and smooth packaging, but it appears to have found a new home under the umbrella of one of its more traditional competitors. Edgewell Personal Care, parent company of the Schick and Wilkinson razor brands and various other grooming and sun care brands, is buying Harry’s for $1.37 billion. The purchase price surpasses the $1 billion that CPG giant Unilever spent to acquire DTC competitor Dollar Shave Club in 2016.

Citing Price Concerns, UK Competition Watchdog Blocks Sainsbury’s-Asda Merger

  • Published in News Briefs
The UK’s chief competition regulator, The Competition and Markets Authority (CMA), has blocked Sainsbury’s proposed £7.3 billion ($9.4 billion) takeover of Walmart-owned Asda. The rejected merger is a major setback, both to the British grocers that sought to compete against market leader Tesco, and to Walmart, which had plans to exit the UK…

Mastercard Acquires POS Financing Provider Vyze

Mastercard has purchased Vyze, a financing option offered at the retail POS that connects merchants with multiple lenders. Terms of the acquisition were not disclosed. “Both consumers and businesses want the best choice and service, exactly when they need it,” said Blake Rosenthal, EVP of Global Acceptance at Mastercard in a statement. “Vyze adds to our ability to empower banks and other lending partners to participate in the growing trend of retail financing. The combination of their platform with our technology and network complements our existing payments programs.”

Ascena Retail Sells Maurices Majority Stake To Private Equity Firm For $300M

Ascena Retail Group, the conglomerate that owns and operates specialty apparel retailers including Ann Taylor, LOFT, Lane Bryant and DressBarn, is selling off its majority stake in Maurices as it explores options to rebuild a profitable business across all banners. Ascena will sell to private equity firm OpCapita LLP for approximately $300 million. Ascena will maintain a minority share and will continue to support Maurices through a managed services agreement, including support for IT, supply chain, sourcing and some back-office functions.
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