It’s a ‘highly strategic acquisition.’
Signet Jewelers Ltd. (NYSE: SIG) announced that it will buy R2Net, owner of online jewelry retailer JamesAllen.com, for $328 million.
“This is a highly strategic acquisition for Signet,” said Virginia C. Drosos, CEO of 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.”
In addition to JamesAllen.com, R2Net owns Segoma Imaging Technologies, which “provides R2Net machines to enable delivery of next-generation digital shopping experience for jewelry,” according to a press release. R2Net’s technologies include 360° Diamond Display Technology, Virtual Ring Sizer and Ring Try-On mobile application.
“We founded JamesAllen.com with a mission to offer beautiful rings, simplicity, selection, pricing transparency and overall value to consumers online,” said Oded Edelman, co-founder and CEO 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 transaction is expected to close in the third quarter of fiscal 2018. It is subject to customary closing conditions and regulatory approval.
Founded in 2006, R2Net is headquartered in New York and maintains operations globally, including technology innovation centers in Israel and 24/7 customer service operations in Frederick, MD.
Signet is the parent of Sterling Jewelers, which operates Jared the Galleria of Jewelry, Kay Jewelers and Zales.
The all-cash deal will be financed with a term loan provided by JPMorgan Chase Bank N.A. The loan is expected to be repaid in full by the end of fiscal 2018, according to the release.
R2Net brands will largely operate as an independent division of Signet and its current leadership team will remain intact.
In addition to his role as president of JamesAllen.com, Edelman will become chief digital innovation adviser of Signet.
Edelman and the R2Net founders have agreed, subject to the completion of the transaction, to invest a portion of their transaction proceeds in Signet shares.