Signet Jewelers Ltd. (NYSE: SIG) will acquire R2Net for $328 million in an all cash transaction. R2Net notably, is the owner of JamesAllen.com, an online jewelry retailer, as well as Segoma Imaging Technologies, which provides R2Net machines to enable delivery of digital shopping experience for jewelry.
Signet says in its statement that this acquisition will bring together Signet’s business along with R2Net’s digital shopping capabilities to create an enhanced customer shopping experience and as well to accelerate Signet’s Customer-First OmniChannel strategy. The acquisition represents an important step for Signet towards building digital capabilities for OmniChannel transformation.
R2Net was founded in 2006, and is known for its innovative technologies include proprietary 360° Diamond Display Technology, Virtual Ring Sizer and Ring Try-On on its mobile application.
“This is a highly strategic acquisition for Signet. The James Allen brand and R2Net’s technologies and innovative approach present a unique opportunity to rapidly enhance our digital capabilities and create a distinctive customer shopping experience which more seamlessly integrates our digital and physical retail platforms,” said Virginia C. Drosos, Chief Executive Officer of Signet.
Oded Edelman, Co-founder and Chief Executive Officer of R2Net. “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 acquisition is expected to be completed by the end of the third quarter of the 2018 fiscal year, subject to customary closing conditions and regulatory approval as well as a loan provided by JPMorgan Chase.
After the acquisition is completed, R2Net will mainly operate as its own division of Signet and Edelman will still hold his President role as well become Chief Digital Innovation Advision to Signet. Both CEOs of Signet and R2Net have agreed that a portion of the transaction will go into Signet shares.
“Together, we will redefine the jewelry shopping experience,” said Drosos.