Tyco to acquire retail analytics company
Tyco International announced in a statement that it has reached a definitive agreement to acquire ShopperTrak, a global provider of retail consumer behaviour insights and location-based analytics, for approximately US$175 million in cash.
According to the statement: Chicago-based ShopperTrak provides customer traffic and related intelligence to more than 1,200 retailers in 97 countries. The company’s solutions, such as perimeter traffic counting, in-store consumer behavior analytics and industry benchmarking, enable retailers to improve sales and operational effectiveness.
“Tyco is working with the world’s leading retailers to meet their omni-channel needs and respond to changing consumer behaviour. The ShopperTrak acquisition will enable us to help retailers effectively improve the shopper’s experience, thus enhancing their revenues and profitability,” said Girish Rishi, Tyco’s Executive Vice President, North America Integrated Solutions & Services and Global Retail Solutions.
ShopperTrak currently generates approximately US$75 million annual revenue. The financial results of this business will be reported within both the North America and Rest of World Integrated Solutions and Services segments. The acquisition is expected to be neutral to earnings in the first 12 months following the completion of the transaction. Excluding purchase accounting from amortization, Tyco expects the transaction to be $0.02 accretive to earnings per share before special items (EPS) over the same period. Tyco’s fiscal 2016 EPS guidance for the first quarter and full year remain unchanged.
This transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in Tyco’s fiscal second quarter.