Kroger and Inmar Finalize Strategic Relationship
Inmar and The Kroger Co. (NYSE: KR) today announced the completion of Inmar's acquisition of You Technology, LLC, a digital coupon and digital rebate publishing platform, from Kroger and the finalization of Inmar's long-term service agreement to provide digital coupon services to the Kroger family of stores.
Kroger's sale of YouTech to Inmar was for total consideration of $565 million, including $400 million of cash consideration received upon closing. Kroger intends to use the after-tax cash proceeds from the sale to reduce debt.
"The monetization of our investment in YouTech and long-term agreement with Inmar demonstrate how Kroger can create value in different ways," said Stuart Aitken, Kroger's senior vice president of alternative business. "We are excited about the additional value that can be brought forward through future partnerships to create customer value."
YouTech's cloud-based retail platform bridges the gap between online engagement with product manufacturers and in-store purchases. Together, Inmar and YouTech will bring innovation and new products to market faster to meet the evolving needs of CPGs and retailers, no matter the size, and to better compete in this rapidly evolving and competitive space.
"We look forward to our new strategic relationship with Inmar, which will bring Kroger's unique assets and personalization expertise together with Inmar's technology solutions to drive more innovation and value for Kroger customers and CPG partners," said Yael Cosset, Kroger's chief digital officer. "We'd like to thank the team at YouTech for all of their contributions to our customers and to Kroger."
In addition, as part of the acquisition, Cheryl Black, CEO of YouTech, will join Inmar's Executive Management Team as Vice President and General Manager, Retail Solutions. Cheryl brings extensive experience in leading customer-centric teams focused on delivering innovative solutions for clients.
"With this acquisition we will be able to accelerate our innovation to deliver a more cost-effective, enhanced product set including better tools, reporting and analytics, as well as broader distribution," said David Mounts, Chairman and CEO of Inmar. "We are excited to have Cheryl join our team and look forward to having her customer focus, retail expertise and entrepreneurial spirit leading product strategy for retail."