Beyond, Inc., the successor and owner of online retailers Overstock and Bed Bath & Beyond, acquired the intellectual property and other brand assets of Zulily, the now-defunct e-commerce retailer.
Beyond intends to strengthen its position in the off-price market further through the acquisition and complement the company’s suite of brands, including Overstock, which Beyond is relaunching later this month.
“This acquisition doubles down on our belief in the off-price market and its importance to building our business, improving our margin profile and growing our customer file,” said Marcus Lemonis, executive chairman of Beyond, Inc. “Zulily, in combination with our legacy brand, Overstock, will provide our vendors multiple outlets that not only meet customers at various price points but also offer an additional outlet to improve their inventory turns and financial performance.”
Through the transaction, Beyond, Inc. acquires the intellectual property assets of the Zulily brand, including website and domain names, trademarks, tradenames, customer database, social media accounts, software to run the Zulily website, and goodwill associated with the brand. The transaction excludes Zulily’s liabilities, liens and debts.
Pursuant to Beyond’s asset purchase agreement, the company purchased the assets for $4.5 million plus acquisition-related costs, funded with cash on hand.
“This acquisition marks a strategic step forward in the transformation and long-term growth of Beyond,” continued Lemonis. “We’re excited about the global vendor pool this acquisition opens the door to, driving incremental revenue by re-engaging Zulily’s 18 million customers as well as the existing Beyond customer database with significant synergies across product categories.”
Zulily’s new website will be fully functional by the end of the second quarter and contribute to Beyond’s 24-month revenue goal without adding incremental fixed expenses.
“Bringing the trusted Zulily brand into our asset-light business model allows us to offer furniture and home furnishings, apparel and footwear, jewelry and watches, among other categories that are also core competencies of our off-price Overstock business with flash sale deal pricing,” said Dave Nielsen, CEO of Overstock. “The ramp with Zulily is simple, as the website and mobile app are already built and available in the Shopify environment. We will be able to integrate it seamlessly into our back-end systems for order fulfillment, logistics and operations to be handled by our existing teams.”
Image courtesy Zulily
