[Abstract]Gilt in the scenery when the financing of $280 million, the valuation was $1 billion.
Re/code Chinese station on January 8th reported
Sax Fifth Avenue and a number of other chain boutique parent company Hudson’s Bay announced on Thursday, will be $250 million price to buy Gilt Groupe. Re/code said on Wednesday that the deal will be announced as early as Thursday.
from the perspective of investment returns, Gilt sale price is disappointing. The company raised $280 million in venture capital financing, while the company’s valuation exceeded $1 billion.
but from a strategic point of view, the acquisition will bring a new brand Gilt. The deal is expected to be completed in February 1st. In the announcement, Hudson’s Bay said, Gilt users will give Saks Off Fifth discount store to help, and these discount stores will also become the Gilt concept store".
Hudson’s Bay said the deal will bring additional revenue of $2016 to the company’s fiscal year 500 million, and the fiscal year after the adjustment of interest income tax depreciation and amortization of (EBITDA) increased by approximately $40 million.
, the company said in a statement: Saks Off Fifth revenue growth opportunities include, Gilt users to bring the growth of passenger traffic, as well as the Saks Off store in the Gilt concept store to expand sales. After the merger, the company will also be able to reduce costs, as well as the opportunity to improve operational efficiency, such as reducing logistics costs, strengthen procurement capacity, as well as Gilt and Saks Off share between the inventory, etc.."
Gilt is the United States flash purchase electricity supplier pioneer. The company sold a wide range of discounted goods in a fashion that was very popular in the United States since 2007 and 2008. However, over the past few years, due to the retailer’s crazy e-mail promotions, as well as the reduction of high-end commodity stocks, flash purchase electricity supplier began to decline. Gilt is forced to provide more goods that can be found elsewhere, so it is difficult to keep the novelty of the product. (Li Wei)