Signet Closes James Allen Takeover Deal

RAPAPORT… Signet Jewelers has completed its acquisition of R2Net, the
owner of ecommerce site James Allen, saying it expects the deal to add $80
million to $90 million to its revenue for the current fiscal year.

Signet bought New York-based R2Net for $328 million in cash,
with R2Net’s brands — James Allen and Segoma Imaging Technologies — set to
operate as an independent division of the US jeweler. Signet will report R2Net’s
financial results under its Sterling Jewelers division, it said Tuesday.

The parties have completed the deal just under three weeks
after Signet’s August 24 announcement that they had agreed to combine.

“We are pleased with the rapid completion of the R2Net
acquisition, which supports our focus on enhancing omni-channel consumer
experience and building a culture of innovation and agility across our
organization,” said Signet CEO Virginia Drosos.

R2Net offers 360-degree display with at least 15-times
magnification for every diamond on the James Allen site, Signet said. It also
features a “virtual vault,” enabling consumers to access more than 150,000
diamonds from around the world in an interactive, 360-degree, high-definition
movie.

In addition, James Allen’s customer-service operation
lets potential buyers consult with diamond experts online or via phone at
any time of the day, Signet explained. This includes using a real-time diamond
inspection service in which gem specialists share their screens with customers.

Sales on the James Allen platform have grown
two-and-a-half-fold in the last two years, Signet added.

“Together with the R2Net team, we believe we can lead
transformation in the jewelry sector by digitizing how we engage, communicate
and serve consumers whenever and wherever they desire,” Drosos said.

Signet’s revenue fell 5% to $2.27 billion in the past fiscal year to January 28.