Signet Jewelers, the world's largest diamond jewelry retailer, announced Friday that it was acquiring Israeli e-commerce and diamond technology company R2Net for $328 million. The deal is expected to close in the third quarter of 2018. The Ohio-based Signet operates some 3,600 stores worldwide. It is a key player in the middle market jewelry segment and dominates the speciality jewelry markets in the U.S., Canada and the U.K. R2Net was founded in 2006 by Oded Edelman, James Schultz, Michele Sigler and Dean Lederman, in Herzliya. It is currently headquartered in New York and maintains its technology innovation centers in Israel. R2Net operates e-commerce jewelry retailer JamesAllen.com and Segoma Imaging Technologies, which develops 3-D technology that magnifies high-definition images of diamonds for online platforms. This allows retailers, manufacturers and consumers to transact digitally without the high expenses and time delays associated with traditional brick and mortar alternatives. The company's innovative technologies include proprietary 360 Technology and Virtual Ring Sizer and Ring Try-On mobile application. A statement released by Signet billed JamesAllen.com as, one of the fastest growing online retailers of engagement rings and loose diamonds, which has more than doubled its sales in the last two years. "This is a highly strategic acquisition for Signet. The James Allen brand and R2Net's technologies and innovative approach present a unique opportunity to rapidly enhance our digital capabilities and create a distinctive customer shopping experience which more seamlessly integrates our digital and physical retail platforms. We look forward to the R2Net team joining the Signet family. Together, we will redefine the jewelry shopping experience and further accelerate our Customer-First OmniChannel strategy," Signet CEO Virginia C. Drosos said. "We founded JamesAllen.com with a mission to offer beautiful rings, simplicity, selection, pricing transparency and overall value to consumers online," Edelman said. "By joining forces with Signet, we believe we will be able to accelerate the growth of JamesAllen.com and our adjacent R2Net businesses while continuing to build on our unique culture and technology. The Signet and R2Net teams have a shared belief that consumers deserve the best jewelry shopping experience and we look forward to continuing to build innovative technologies together to enhance the consumer experience across the Signet brand portfolio. I am excited to be working with Ms. Drosos and the Signet team to delight jewelry consumers whether in-store, online, or by phone." Following the acquisition, R2Net brands will largely operate as an independent division of Signet and its current leadership team will remain intact. In addition to his role as president of JamesAllen.com, Edelman will become chief digital innovation adviser for Signet, where he will report directly to Drosos and assume the responsibility for driving Signet's digital innovation strategy.
