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US Grocer Kroger Closes Sale of You Technology to Inmar
Friday 15 March 2019

15 March 2019 - North Carolina, US-based Inmar, Inc. a technology company that owns and operates intelligent commerce networks, and Ohio, US-based food retailer The Kroger Co. (NYSE: KR) have closed a long-term agreement in a collaboration that will drive innovation in digital management services, the companies said.

The relationship includes the sale to Inmar of California, US-based You Technology, a digital coupon and digital rebate publishing unit owned by Kroger, in conjunction with a long-term services agreement with Inmar for the continued delivery of digital offer management services to Kroger.

Kroger's sale of YouTech to Inmar was for total consideration of USD 565m, including USD 400m of cash consideration received upon closing. Kroger intends to use the after-tax cash proceeds from the sale to reduce debt.

YouTech's cloud-based retail platform bridges the gap between online engagement with product manufacturers and in-store purchases.

In combining YouTech's online engagement capabilities with Inmar's expertise in managing open platforms, this transaction will improve accessibility and expand coupon and rebate distribution for CPGs.

Kroger said the services agreement supports Restock Kroger, namely the partner for customer value and redefine the grocery customer experience drivers.

Following the acquisition, Inmar will work with Kroger to bring high quality digital offers to Kroger customers. The acquisition of YouTech will also broaden its distribution network and enhance Inmar's capabilities as a trusted, independent intermediary, allowing the company to better serve the evolving needs of CPGs and retail partners.

The Kroger Co. is an American retailer and the largest supermarket chain by revenue, the second-largest general retailer and the seventeenth largest company in the US.

Inmar serves retailers, manufacturers, healthcare providers, government and employers as an intermediary, helping them redefine innovation.

South San Francisco-based YouTech was acquired by Kroger in 2014. Its cloud-based digital offer platform enables digital offers for redemption at Kroger and retailers in the US.
Details
Date Published: 15/03/2019
Target: You Technology
Country: USA
Deal Size: 565m (USD)
Sector: Wholesale/Retail
Type: Divestment
Financing:
Status: Agreed
Vendor: The Kroger Co
Buyer: Inmar, Inc
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