Neiman Marcus aims to acquire Stylyze
Department store operator Neiman Marcus announced on Wednesday plans to acquire Seattle-based, women-founded technology company Stylyze, Inc.
The machine learning SaaS platform offers product attribution data and curated content to power relevant shopping experiences across the customer journey, which Neiman Marcus plans to leverage to build a differentiated luxury experience.
The acquisition represents over half-billion dollars in planned gross investment over the next three years by Neiman Marcus to support the company's integrated luxury retail strategy. The transaction is expected to close in the first quarter of fiscal year 2022, subject to customary closing conditions.
"This is one of many examples of how we are building our digital ecosystem that will enable differentiated 'only at NMG' luxury experiences for customers," said Bob Kupbens, executive vice president, chief product and technology officer, Neiman Marcus Group.
"Customers today are looking for seamless and unique experiences that improve their shopping journey when it comes to discovering and engaging with fashion. We have a shared alignment with Stylyze and are excited to bring their technology and stellar team on board."
The company first began its strategic partnership with Stylyze in 2018. Today, Stylyze’s products and capabilities are an important component of the company's remote-selling platform and industry-leading clienteling tool, Connect.
Next, Neiman Marcus plans to explore integrating its functionality into additional digital tools, including e-Commerce, mobile apps, messaging channels like text message, chat, and phone calls, and other engagement channels.
"Over the past year, we've been strengthening the foundation of our business. We knew the rebound was coming, and we've been experiencing the return of luxury as it accelerates. NMG is perfectly positioned to capture the growing interest of luxury customers as we develop essential digital capabilities that ensure we drive profitable and sustainable growth," said Geoffroy van Raemdonck, chief executive officer, Neiman Marcus Group.
"By acquiring Stylyze, we will be able to advance our strategy of integrated luxury, building long-term relationships with our luxury customers that create emotional value and high lifetime value potential. This allows us to deepen our relationship with our customers through the use of technology.”
Neiman Marcus emerged from Chapter 11 bankruptcy in September, after initial filling at the height of the Covid-19 pandemic.
Its new owners include PIMCO, Davidson Kempner Capital Management, and Sixth Street. Post-financial restructuring, the company said it is able to make strategic investments, like the acquisition of Stylyze, “because of its renewed financial flexibility.”
The company had, at the end of April, total outstanding debt of $1.1 billion vs. $5.1 billion the prior year. NMG currently has available liquidity of over $850 million vs. $132 million a year ago and has no borrowings outstanding on a $900 million revolver.
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