Kroger Finalizes Sale of Digital Coupon Service to Inmar
The Kroger Co. and Inmar have finalized the deal for You Technology, a digital coupon and digital rebate publishing platform, and part of the negotiations is that Inmar will provide long-term digital coupon services to Kroger’s stores. The sale, which was announced in December, is worth $565 million, including $400 million of cash consideration received upon closing. Kroger intends to use the after-tax cash proceeds from the sale to reduce debt.
“The monetization of our investment in YouTech and long-term agreement with Inmar demonstrate how Kroger can create value in different ways,” said Stuart Aitken, Kroger's SVP of alternative business. “We are excited about the additional value that can be brought forward through future partnerships to create customer value.”
YouTech's cloud-based retail platform bridges the gap between online engagement with product manufacturers and in-store purchases. Together, Inmar and YouTech will bring innovation and new products to market faster to meet the evolving needs of CPGs and retailers, no matter their size, and to help them better compete in this rapidly evolving and competitive space.
In addition, as part of the acquisition, Cheryl Black, CEO of YouTech, will join Inmar's executive management team as VP/GM of retail solutions.
The Kroger Co. operates a seamless digital shopping experience and 2,800 retail food stores under a variety of banner names nationwide. The Cincinnati-based company is No. 2 on Progressive Grocer's 2018 Super 50 list of the top grocers in the United States, and is Progressive Grocer's 2018 Retailer of the Year.