RetailNext, an in-store analytics provider announced its acquisition of in-store mobile analytics company, Nearbuy Systems. Nearbuy Systems was backed by $2.5 million from Eric Schmidt’s Innovation Endeavors, Motorola Solutions Venture Capital, Metamorphic Ventures and other investors. Although the details of the acquisition have not been released, it was said to be a 100% equity deal. Alexei Agratchev, CEO of RetailNext describes the acquisition as a way for the two companies to work together to create “a really big business together.”
RetailNext was of the first companies to introduce e-commerce analytics to brick-and-mortar stores. The company focuses on using video surveillance, passive wi-fi tracking, workforce management, point-of-sale systems, credit card transactions, etc. to provide retailers with a clearer understanding of what happens with their customers in their stores.
In only six years, RetailNext has grown to tracking over 500 million shoppers per year. They operate in thousands of stores across 33 countries. More than 400 stores are added each month. Some of their customers include American Apparel, Ulta, Family dollar and Bloomingdales.
RetailNext has generated revenue each year since 2009, and it experiences 100% growth each year. Although the niche has become crowded with potential competitors, RetailNext has remained the leading force in in-store analytics. Nearby will provide RetailNext with the one surveillance function, they have been unable to dominate; opt-in data.
Nearbuy allows retailers to offer free Wi-Fi to their customers. When connecting to Wi-Fi, customers agree to a terms of service, which allows the retailer to track them while they are in the store. This includes tracking where they go online, as well as tracking where they physically go while in the store. Nearbuy currently has 40 customers worldwide.
According to Agretchev, “Nearbuy has the largest amount of opt-in users and opt-in deployments out of anyone out there on the market. They’re adding about a hundred thousand new opt-in users every day, and they have a few million people who have opted-in to their platform. That was one of the bigger drivers for the deal.”
Nearbuy services can now be available to all RetailNext customers. RetailNext is keeping Nearbuy’s entire 13-person team.