Scripps Offloads Shopzilla

KNOXVILLE: Scripps Networks Interactive has entered an agreement with the private-equity firm Symphony Technology Group for the sale of the consumer-led online retail platform Shopzilla, in a $165 million deal.

Symphony Technology Group (STG), which has a mission to invest in and build software and service companies, is acquiring all of the outstanding shares of Shopzilla for $165 million, comprised of $150 million in cash paid upon closing of the transaction and $15 million in deferred payments.

“While we believe that Shopzilla has strong growth potential in the online retail space, its mission and future trajectory diverge from SNI’s focus on lifestyle media brands,” said Joseph G. NeCastro, the chief financial and administrative officer for Scripps Network Interactive. “The best way to create the most value for both parties was for Shopzilla to find a new partner and for SNI to continue to focus on its core. We believe STG will be a strong partner and will enable Shopzilla to accelerate its growth.”

“We are very excited to be partnering with the team at Shopzilla,” added J.T. Treadwell, the managing director with STG. “We believe the platform is a tremendous leverage point to create value for consumers, to generate sales for merchant partners, and to drive innovation in new models of consumer e-commerce. In addition, Shopzilla’s management team is innovative and driven. They have created one of the most important players in online retail. We believe that through this partnership, and by leveraging the experience STG has had with consumer insight investments, such as SymphonyIRI Group, we will work together to build upon and expand the value of the platform to consumers and customers at the leading edge of a very dynamic e-commerce industry. SNI has been a strong owner of the business and we appreciate the opportunity to build upon what they and the team at Shopzilla have created.”

“In partnership with SNI, we have not only fortified our position as a leader in comparison shopping and retail consumer insights, but also expanded and diversified our portfolio to include new value propositions for the consumer and our merchant partners in product discovery and group/flash sales,” commented Bill Glass, the president of Shopzilla Inc. “We have been extremely fortunate to have had such a strong partnership with SNI over the past six years that has enabled us to continue to pioneer new models for delivering value in online retail. We are very excited to partner with STG, which has a proven track record of consumer insight innovation and successful partnerships with technology-driven companies like ours. With this new partnership, Shopzilla is poised to enter its next chapter of innovation and growth.”