by MIDVALE, Utah — Beyond, Inc., the owner of online retail giants Overstock and Bed Bath & Beyond, has acquired the intellectual property and other brand assets of flash sale and e-commerce retailer Zulily for $4.5 million.
This company said the strategic move was designed “to further strengthen Beyond’s position in the off-price market, enhancing value for customers on the products they’re looking for. The addition of Zulily will complement Beyond’s suite of brands, including Overstock, which is scheduled to relaunch later this month.”
“This acquisition doubles down on our belief in the off-price market, and its importance to building our business, improving our margin profile, and growing our customer file,” said Marcus Lemonis, executive chairman of Beyond, Inc. “Zulily, in combination with our legacy brand, Overstock, will provide our vendors multiple outlets that, not only meet customers at various price points, but also offer an additional outlet to improve their inventory turns and financial performance.”
The purchase includes various intellectual property assets related to the Zulily brand, including website and domain names, trademarks, tradenames, customer database, social media accounts, software to run the Zulily website, and goodwill associated with the brand. The transaction excludes all of Zulily’s liabilities, liens, and debts and was funded entirely with cash on hand.
“This acquisition marks a strategic step forward in the transformation and long-term growth of Beyond,” Lemonis said. “We’re excited about the global vendor pool this acquisition opens the door to, driving incremental revenue by reengaging Zulily’s 18 million customers as well as the existing Beyond customer database with significant synergies across product categories.”
The company said the new Zulily site is expected to be fully functional by the end of Q2 2024 and contribute to Beyond’s 24-month revenue goal without adding any additional incremental fixed expense.
“Bringing the trusted Zulily brand into our asset-light business model allows us to offer furniture and home furnishings, apparel and footwear, jewelry and watches, among other categories that are also core competencies of our off-price Overstock business with flash sale deal pricing,” said Dave Nielsen, chief executive officer of Overstock. “The ramp with Zulily is simple, as the website and mobile app are already built and available in the Shopify environment. We will be able to integrate it seamlessly into our back-end systems for order fulfillment, logistics, and operations to be handled by our existing teams.”
