Authentic Brands Group (ABG) has settled and agreed to dismiss its lawsuit against checkout solution provider Bolt. Both companies agreed to continue their partnership, which currently powers one-click checkout for Forever 21 and Lucky Brand, with the possibility of expanding the technology to more ABG brands in the coming months.
Additionally, ABG has taken a stake in Bolt, according to Jamie Salter, Founder, Chairman and CEO of ABG. The retail holding company is “excited to continue exploring broader opportunities with our businesses,” Salter said in a statement.
ABG’s share of Bolt will reportedly be “meaningful,” a person familiar with the matter told Bloomberg. ABG had argued in the suit that it should be entitled to buy up to 5% of Bolt for a price set earlier in the company’s existence. The agreed-upon stake will reportedly be less than 5%, but ABG will not have to pay for it, according to the person.
“The settlement is an amicable solution for both sides,” said Maju Kuruvilla, CEO of Bolt in an interview with Bloomberg.
Frictionless retail has become increasingly important Offering one-click checkout resulted in a 40% year-over-year ecommerce revenue boost for Lucky Brand, according to data from Bolt.
“The ecommerce landscape continues to evolve rapidly and we are committed to working with the best and the brightest to optimize our loyal customer experiences,” said Adam Kronengold, CDO of ABG in a statement. “ABG is excited to be a part of the next chapter of Bolt’s evolution and thrilled to partner and innovate for our customers.”