Woolworths will take a controlling stake in data business Quantium for $223 million and intends to combine the business with its own data science and advanced analytics teams.
The retailer said in a financial filing that the investment would lift its stake in Quantium from 47 percent to 75 percent, with the remaining 25 percent remaining in the hands of Quantium founders and staff members.
It originally took a stake in Quantium back in 2013 for $20 million.
Woolworths CEO Brad Banducci said advanced analytics is “key to improving the experiences, ranges, and services we provide to our customers and the support we provide to our teams and suppliers”.
“Through this transaction, we aspire to bring together Quantium’s advanced analytics capability and Woolworths Group’s retail capabilities to unlock value across our entire retail ecosystem,” Banducci said.
Woolworths will set up a new business unit called Q-Retail, which will offer Quantium services as well as “Woolworths Group’s collective data science and advanced analytics capabilities, with a focus on delivering against the group’s advanced analytics aspirations”.
Q-Retail will be led by Amitabh Mall, who will also serve as Woolworths’ chief analytics officer. Mall joins the company from Boston Consulting Group.
Outside of this, Quantium will also continue to exist in its own right.
The transaction is expected to be completed by the end of financial year 2021.