Liberty Interactive Corp. agreed to buy Zulily Inc. for $2.4 billion, adding an online retailer targeted at moms to its QVC home-shopping service.
The price comes to $18.75 per Zulily share, 49 percent higher than Friday’s closing price. Liberty Interactive will provide $9.375 in cash and 0.3098 newly issued shares of QVC trading stock for each Zulily share, according to a statement Monday.
Zulily, which operates daily flash sales of items ranging from maternity clothes to bibs and toys, is bringing a younger clientele and expertise in personalizing offers to the QVC network. Zulily’s shares, sold in an initial public offering in 2013, had slumped 66 percent in the past year as sales growth slowed.
QVC Chief Executive Officer Mike George was appointed to Liberty Interactive’s executive committee as part of the deal, where he’ll serve along with John Malone and Greg Maffei. Zulily will stay in Seattle with co-founder Darrell Cavens remaining as president and CEO of the business. Co-founder Mark Vadon will join Liberty Interactive’s board.
Funding for the cash portion of the deal is expected to come from cash on hand at Zulily and QVC’s revolving credit facility, the companies said. The transaction will close in the fourth quarter.