Woolworths purchases majority stake in Quantium for $223m
- 20 April, 2021 10:13
Woolworths is outlaying $223 million to gain a majority stake in data analytics firm, Quantium, and has flagged plans to establish a new advanced analytics practice bringing the best of both companies together as it increases its shareholding to 75 per cent.
In an announcement made today, the ASX-listed retail giant confirmed it was spending $223 million to lift its shareholding from 47 per cent to 75 per cent in Quantium. Woolworths originally acquired a 50 per cent stake in Quantium in 2013 for approximately $20 million as part of a long-term partnership aimed at improving its data insights and analytics capabilities.
Under the latest investment, Quantium will become part of the Woolworths Group but retain its senior leadership team including co-founder and CEO, Adam Driussi. It will also continue to operate in sectors outside of retail.
However, the companies said a new business unit, Q-Retail, would being set-up which would bring together advanced analytics, retail and data science capabilities existing across both the Quantium and Woolworths businesses. The new division will be led by Amitabh Mall as managing director, who will also serve as Woolworths Group’s chief analytics officer. Mall joins from Boston Consulting Group, where he spent 20 years, most recently leading consumer and retail practices in Asia-Pacific.
Woolworths chairman, Gordon Cairns, said the group had long admired the Quantium business, which has experienced exponential growth in both Australia and abroad thanks to its data analytics offerings.
“We have enjoyed a successful partnership with them over the last eight years by jointly developing products and services that provider critical insights to both Woolworths Group and our suppliers, helping us put our customers first in our decision making,” he commented.
Woolworths Group CEO, Brad Banducci, said the latest transaction was about bringing together Quantium’s advanced analytics capability with Woolworths’ retail capabilities to unlock value across the entire retail ecosystem.
“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,” he said. “The way we gather data, interpret it and protect it, is becoming ever more important.
“By working better together, we aim to transform the rapidly evolving retail sector, helping us better service our customers and support our team and supplier partners.”
Alongside retail, Quantium has been working with FMCG, banking, insurance, consumer services, property, health and government verticals. Woolworths said under the existing management team, the business will continue to maintain strong confidentiality agreements with clients in these sectors.
“We’re delighted to deepen our existing partnership with Woolworths Group,” said Driussi. “This partnership enables Quantium to further build out our retail capabilities while accelerating our vision to be the world’s most respected and impactful data science and AI partner.”
The deal is expected to be completed by the end of FY2021.