Zulily Acquired By QVC Parent Company For $18.75 After $22 IPO
James KosurAugust 17, 2015
Zulily is being acquired after watching its IPO fall below an initial IPO price of $ 22 per share.
The company is being acquired by Liberty Interactive Corporation, owner of TV home shopping channel QVC. The company will pay $ 18.75 per share, a 15% discount over the company’s stock market debut and a 49% premium over Friday’s closing price of $ 12.57.
Liberty Interactive is valuing the company at $ 2.4 billion.
iberty Interactive CEO Greg Maffei said, “We are excited for zulily to join the Liberty family. Darrell, Mark and their team have built an impressive business around entertainment, discovery and value to the customer, which fits perfectly with the QVC philosophy. Combined under Liberty, we have an incredible opportunity to delight shoppers from the TV to the Internet.”
The deal has been approved by the boards of both companies and is expected to be finalized by the last quarter of the year.
Zulily offers its members flash sales on clothing, toys, and other products targeted directly at children and moms.
Zulily shares were battered after the company deeply cut its full-year revenues outlook. Following a tough quarter the company hired a new CFO.
Shares were up at the e-tailer more than 50% on Monday following news of the upcoming acquisition.
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