Dive Brief:
- E-commerce platform and fashion technology company Lyst will be sold to Zozo for $154 million, the companies announced Wednesday.
- Zozo, which operates Japan-based e-commerce platform Zozotown, is positioning the deal with Lyst as a way to transform fashion discovery through artificial intelligence, as well as a way for both businesses to extend their reach, per the release.
- Under the deal, the companies said that Lyst will become a wholly owned subsidiary of Zozo. The transaction is expected to close this month. Lyst will continue to operate as a standalone business based in London, and Emma McFerran will remain CEO.
Dive Insight:
Lyst’s sale price is considerably cheaper than what the company was valued at in 2021 ($700 million, per TechCrunch) when it was weighing a potential IPO bid. The IPO never came to fruition, however.
Buying Lyst fits into Zozo’s international expansion strategy, particularly because of Lyst’s strong presence in the U.S., U.K. and Europe, per the release.
Both companies will use each other’s tech, and Zozo said it would invest in accelerating Lyst’s AI discovery tool. In addition, Lyst could benefit from Zozo’s sizing and fit tech, per the release. Zozo didn’t provide specific details on what this entails.
“Lyst has built an exceptional platform that aligns perfectly with our vision of creating more inspiring, joyful shopping experiences,” Utahiro Inui, Zozo executive director, said in the release. “Lyst’s industry credibility and unique brand voice, coupled with market-leading technology and scale, means they are uniquely positioned to redefine the space.”
Lyst services 160 million shoppers, per the release, and serves as a discovery platform for 27,000 fashion brands and retailers. Meanwhile, Zozo reaches 12 million users annually.
Lyst additionally produces the Lyst Index, a quarterly ranking of the world’s most popular fashion brands, products and trends.
