Neptune Retail Solutions to acquire Quotient Technology for $430m

Neptune Retail Solutions, an omnichannel retail marketing firm, has agreed to acquire Quotient Technology, a digital promotions and media technology company, in an all-cash deal worth around $430 million.

The transaction has been endorsed by the New York Stock Exchange (NYSE)-listed Quotient Technology’s board of directors following an extensive review process to optimize shareholder value.

Engaged Capital, the holder of about 8.2% of the outstanding shares of Quotient Technology’s common stock has committed to voting in favor of the transaction.

Charlesbank Capital Partners, Neptune Retail Solutions‘ majority investor, will also serve as the majority investor for the combined entity, post-acquisition.

Under the terms of the agreement, Quotient Technology’s shareholders will receive $4 per share in cash, a premium of approximately 36% to the company’s 30-day volume weighted average price as of the most recent market close on June 16, 2023.

Robert McDonald — Quotient Technology Chair said: “We are pleased to enter into this transaction with Neptune and Charlesbank, which will deliver compelling, immediate and certain value to shareholders, while positioning Quotient to continue meeting the needs of its customers.

“The Board undertook a thorough review of the Company’s standalone growth prospects and opportunities to maximize shareholder value, and we are confident this transaction achieves that objective and is the optimal path forward for our shareholders.”

William E. Redmond, Jr. (Bill Redmond), who is the CEO of Neptune Retail Solutions, will head the newly merged business.

This union brings together Quotient Technology’s cutting-edge technology platform, extensive digital promotions retail network, and unique data with Neptune Retail Solutions’ comprehensive in-store network and profound data-driven shopper marketing insights across in-store and print media. It promises to significantly expand the combined entity’s reach and capabilities within the digital and in-store retail marketing space.

Bill Redmond said: “We are thrilled with the transaction and plan to seamlessly integrate Quotient’s team, product suite, and retail partners with Neptune’s omnichannel network. The combination further advances our proven commitment to retailers and advertisers to drive profitable, incremental, and measurable growth, while deepening relationships with and value for consumers.”

The merger is projected to finalize in the second half of 2023, subject to customary closing conditions, including the approval of a majority of Quotient Technology’s shareholders and regulatory review. Notably, the transaction is not contingent on any financing conditions.

Quotient Technology will cease to be a publicly-traded company upon the completion of the transaction.