On Thursday, August 24, 2017, Signet Jewelers Limited (NYSE: SIG) announced that it had agreed to acquire R2Net for $328 million in an all cash transaction. R2Net is best known for being the owner of JamesAllen.com, which is a fast-growing online jewelry retailer. R2Net also owns Segoma Imaging Technologies. The combination provides consumers with a next-generation shopping experience for jewelry.
The acquisition will allow Signet to take full advantage of R2Net’s innovation capabilities and digital technologies to provide consumers with an enhanced shopping experience. Signet believes that the acquisition will speed up the execution of its Customer-First OmniChannel strategy. Signet believes it will benefit by adding the growing millennial online retail brand to its portfolio.
R2Net was founded by Oded Edelman, Michele Sigler, James Schultz, and Dean Lederman in 2006. The company is based out of New York City with global operations. The company has technology innovation centers in Israel and customer service operations in Frederick, Maryland. R2Net has a handful of innovative technologies, including the Virtual Ring Sizer, Ring Try-On mobile application and the proprietary 360-degree Diamond Display Technology.
The company expects the transaction to close sometime during the third quarter of fiscal year 2018. Signet anticipates the transaction to be accretive in the first full year of operations. After the acquisition, R2Net brands will remain mostly independent and will maintain its current leadership team.