Inmar has bought You Technology (YouTech), a digital coupon and digital rebate publishing platform, from Kroger for $565 million.
But the national supermarket chain isn't cutting ties with YouTech. As part of the deal, Kroger will still be able to utilize the platform's digital coupon services.
Inmar is paying $565 million to acquire YouTech, including $400 million of cash consideration that will be received upon closing. Kroger said that it will use the after-tax proceeds 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," Stuart Aitken, Kroger's senior vice president of alternative business, said in a press release. "We are excited about the additional value that can be brought forward through future partnerships to create customer value."
The new partnership will enable Inmar and YouTech to bring innovation and new products to market faster to better compete in the retail 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."
The agreement also includes the addition of Cheryl Black, CEO of YouTech, to Inmar's executive management team as vice president and general manager, retail solutions.
"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."