Liberty Interactive, owner of home-shopping channel QVC, announced Monday it will acquire online retailer Zulily for $2.4 billion. In a press release, the company said it will buy all outstanding shares of Zulily for $18.75 per share, prompting the target's share to gain a sharp 49 percent increase in the market.
Zulily is an e-commerce platform selling clothing, toys and other products that caters to a younger demographic, particularly mothers and children. The acquisition is expected to increase and strengthen QVC's reach in experiential and discovery-driven shopping as well as achieve a foothold in the lucrative online market buoyed by an increase in mobile shopping. "In the second quarter ended June 28, about 56 percent of Zulily's orders were placed from a mobile device, up from about 49 percent a year earlier," reported CNBC.
"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. 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," said Mike George, QVC president and CEO, in the press announcement.
"The deal is expected to close during the fourth quarter of 2015. Zulily will remain in its Seattle headquarters with its current management team," reported USA Today. QVC confirmed that Zulily will operate as a separate brand and be managed by the same team headed by its current President and CEO Darrell Cavens.
