Beyond, Inc. (BYON) announced Thursday that it has acquired the intellectual property and other brand assets of Zulily, the flash sale pioneer and e-commerce retailer.
The owner of online retail giants Overstock (NYSE:BYON) and Bed Bath & Beyond said it purchased the assets for $4.5 million plus acquisition-related costs, funded entirely with cash on hand. The move was designed to strengthen the company's position in the off-price market further.
"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.
Lemonis believes that Zulily, in combination with BYON's legacy brand, Overstock, will provide its vendors multiple outlets that meet customers at various price points, and offer an additional outlet to improve their inventory turns and financial performance."
Reacting to the report, Needham & Company analysts said they view the transaction favorably, with the acquisition opening up an "incremental vendor pool while driving synergies between Zulily's 18M customer file and BYON's database and across product categories while contributing to the company's $2B in '24 revenue goals."
The firm reiterated a Buy rating and a $40 price target on BYON.