Signet Jewelers Ltd. (NYSE:SIG), the world’s largest diamond jewelry retailer, has announced that it is acquiring Israeli ecommerce and diamond technology company R2Net for $328 million, in an all cash deal. R2Net owns online jewelry retailer JamesAllen.com, and Segoma Imaging Technologies, which has developed R2Net machines for online diamond imaging and 3D technology.
The acquisition brings together Signet’s jewelry retail business with R2Net’s innovation capabilities and digital technology to create an enhanced customer shopping experience and accelerate Signet’s execution of its Customer-First OmniChannel strategy while adding a fast-growing online retail brand to Signet’s portfolio. The acquisition represents an important step for Signet towards building scalable digital capabilities for OmniChannel transformation and to attract younger buyers.
R2Net is the second largest platform in the US for diamonds and jewelry, and is distinguished by its innovative technologies including proprietary 360° Diamond Display Technology, Virtual Ring Sizer and Ring Try-On mobile application. R2Net CEO Oded Edelman and one of its founders comes from a family of Israeli diamond traders. He founded Internet company Daronet, then later integrated off-line and online commerce in R2Net, which has its main office in New York and its operations and innovation center in Herzliya. Edelman founded R2Net in 2006 with James Schultz, Michele Sigler and Dean Lederman.
Edelman said, “We founded JamesAllen.com with a mission to offer beautiful rings, simplicity, selection, pricing transparency and overall value to consumers online. By joining forces with Signet, we believe we will be able to accelerate the growth of JamesAllen.com and our adjacent R2Net businesses while continuing to build on our unique culture and technology. The Signet and R2Net teams have a shared belief that consumers deserve the best jewelry shopping experience and we look forward to continuing to build innovative technologies together to enhance the consumer experience across the Signet brand portfolio.
Edelman will join Signet as Chief Digital Innovation Advisor.
The transaction is currently expected to close in the third quarter of fiscal 2018 subject to customary closing conditions and regulatory approval and will be financed with a term loan provided by JPMorgan Chase Bank, N.A., which is expected to be repaid in full by the end of fiscal 2018
Advs. Dan Shamgar, Shira Azran and Noam Tzur, partners at Meitar Liquornik Geva Leshem Tal served as legal counsel to R2Net on the deal. US law firm Weil, Gotshal & Manges LLP and Adv. Ido Zemach partner at Goldfarb Seligman served as legal counsel to Signet. J.P. Morgan Securities LLC served as financial advisor.
Published by Globes [online], Israel business news - www.globes-online.com - on August 25, 2017
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