Jet.com Acquires Hayneedle for $90 Million
Posted on March 7, 2016
Jet.com has acquired Hayneedle, an online retailer of home goods. Jet.com is a members-only shopping club that launched last summer. It uses a dynamic pricing algorithm that finds savings in real time.The acquisition price was not released by Omaha.com reports that the deal was worth $90 million. This wipe out Hayneedle's debt of $43.5 million. Omaha.com says Hayneedle employs about 500 people with about 400 positions in Omaha. In an earlier story about the deal Omaha.com says Jet may be trying to reproduce Wayfair's success in the home goods industry.
Forbes reports that Jet has raised over $700 million so far. Jet founder and CEO Marc Lore tells Forbes, "We think that mass merchants in general have a hard time in this high margin, long tail category called 'home.' It gives Jet an amazing boost in that category."
Hayneedle will reportedly be run as a subsidiary of Jet. It remains to be seen whether Hayneedle's product inventory will be offered on jet.com or if the online stores will be merged together.