QVC Parent Liberty Interactive To Buy Zulily For $2.4B

Liberty Interactive Corporation, the parent company of QVC, has entered into a definitive agreement to purchase online shopping site Zulily. The deal values Zulily at $2.4 billion.

Liberty Interactive said it will acquire all outstanding shares of Zulily for $18.75 per share. Under the acquisition, Zulily will join the QVC Group.

The proposed transaction will bring two complementary businesses under common ownership and further strengthen QVC’s digital commerce position. While QVC and Zulily will be operated as separate consumer facing brands, the company said the collaboration will create synergistic cross opportunities, including leveraging QVC’s global scale, curation, vendor relationships and video commerce expertise at Zulily. Similarly, Zulily’s younger customer demographic, personalization expertise and e-commerce capabilities will boost QVC, the company stated.

“We are excited for Zulily to join the Liberty family,” stated Greg Maffei, Liberty Interactive president and CEO. “Their team has 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.”

“As the world leader in video and e-commerce retail, QVC is dedicated to reimagining shopping, entertainment and community as one,” said Mike George, QVC president and CEO. “In Zulily, we see a like-minded brand that shares our passion for discovering great products, for delivering honest value, and for building long term relationships with customers. Our teams are committed to learning from and inspiring each other and leveraging our platforms in new ways to accelerate growth, serve our customers better, and realize the full potential of both of these extraordinary brands.”

Zulily’s “flash” daily deal oriented shopping site launched in 2010 and bills itself as bringing customers special finds every day. The site’s curated collection includes clothing, shoes, home décor, toys, gifts and more.

Following the close of the transaction, Zulily will remain based in Seattle. It will continue to be run by its management team, with Darrell Cavens remaining president and CEO of Zulily. In connection with the transaction, Mike George is being appointed to the executive committee of the Liberty Interactive board of directors and will serve on that committee with John Malone and Greg Maffei. Darrell Cavens will report directly to Mike George and the other members of the committee. In addition, Zulily co-founder Mark Vadon will join the Liberty Interactive board.

The transaction has been approved by the boards of directors of both companies and is anticipated to close during the fourth quarter of 2015.