QVC will acquire e-retailer zulily for $2.4 billion
QVC says the proposed transaction will bring together two strong businesses built on providing consumers with “experiential, discovery-driven shopping” experiences. The deal will strengthen both companies, as zulily will be able to leverage QVC’s global assets, vendor relationships and video commerce experience, while QVC will benefit from zulily’s younger customer demographic, personalization expertise and e-commerce capabilities, the companies say.
The two merchants determined that only about 6% of zulily’s customers have purchased from QVC in the past. That provides QVC with an opportunity to market to a “highly attractive new customer acquisition funnel,” Liberty Interactive CEO Greg McFay told investors on a conference call this morning.
“In zulily, we see a like-minded brand that shares our passion for discovering great products, for delivering honest value, and for building long-term relationships with customers,” says QVC president and CEO Mike George. “Our teams are committed to learning from and inspiring each other and leveraging our platforms in new ways to accelerate growth, serve our customers better, and realize the full potential of both of these extraordinary brands.”
QVC and zulily will continue to operate as stand-alone companies, and zulily will remain headquartered in Seattle and run by president and CEO Darrell Cavens. Cavens will report to George, and Zulily co-founder Mark Vadon will join the Liberty Interactive board of directors.
“QVC has built an amazing business with a great culture and incredibly similar understanding for bringing entertainment, discovery and value into the daily customer experience,” Cavens says. “This combination under Liberty is about investing in our future and providing a tremendous opportunity to accelerate our platform for growth of the zulily brand through the partnership with QVC.”
The boards of both companies have approved the transaction, and the deal is expected to close during the fourth quarter of 2015.
With $3.53 billion in online sales in 2014, QVC is ranked No. 15 in the Internet Retailer 2015 Top 500 Guide. Zulily is No. 39, and brought in $1.20 billion in web sales in 2014.
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