A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ) has completed its acquisition of Hedia, an Israeli retail media company with fiscal 2025 audited revenue of approximately $20 million. The deal brings together A2Z Cust2Mate's smart cart technology, digital in-store retail media inventory, shopper journey data and measurement capabilities with Hedia's advertiser relationships, sales organization and campaign execution capabilities. For investors, the transaction signals a significant expansion into the fast-growing retail media market, where physical stores are increasingly viewed as measurable, monetizable media channels. The acquisition is expected to be accretive to earnings, with A2Z estimating that Hedia would have contributed approximately $2.3 million in annual adjusted EBITDA based on historical financial results.
Under the terms of the agreement, A2Z Cust2Mate paid approximately $8.4 million in cash and issued 833,333 restricted common shares at closing. Approximately $7 million of the cash consideration is expected to be funded through a commercial bank term loan. The sellers are also eligible for up to approximately $6.7 million in additional performance-based cash consideration tied to agreed targets for 2027 and 2028. Hedia will continue operating under its existing brand, with Meron Gal remaining CEO and Ofer Gal remaining chairman. The structure of the deal, which includes a mix of cash, stock and performance-based earnouts, aligns the interests of Hedia's leadership with the combined company's future success.
The strategic rationale behind the acquisition is to create a more comprehensive platform for retailers and brands to engage shoppers and monetize the physical store. A2Z Cust2Mate's AI-powered Smart Cart creates a continuous digital connection with shoppers throughout the in-store journey, enabling targeted retail media and offers at the point of decision while capturing real-time data on shopper behavior. By integrating Hedia's retail media capabilities, A2Z Cust2Mate can offer advertisers a fully integrated solution that spans in-store touchpoints, media inventory, shopper journey data and measurement. This combination is designed to help retailers and brands measure the impact of their campaigns closer to the point of purchase, addressing a key challenge in retail media: proving return on investment in physical retail environments.
For the broader retail industry, the acquisition highlights the accelerating convergence of technology, data and media in physical stores. As retailers seek new revenue streams and brands look for more effective ways to reach shoppers, the ability to deliver personalized, measurable advertising in-store is becoming a competitive advantage. A2Z Cust2Mate's modular platform, which combines advanced software, AI, computer vision and purpose-built hardware, is designed for enterprise-scale deployment and chain-wide operations. The addition of Hedia's sales organization and campaign execution capabilities could accelerate the adoption of these solutions across multiple markets.
Investors can find more details about the acquisition in the full press release available at https://ibn.fm/oQnFb. The latest news and updates relating to A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ) are available in the company's newsroom at A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ). The press release was distributed through InvestorWire, a specialized communications platform that is part of the Dynamic Brand Portfolio at IBN. For full terms of use and disclaimers applicable to all content provided by InvestorWire, please see https://www.InvestorWire.com/Disclaimer.
