San Francisco - Francisco Partners, a leading technology-focused private equity firm, announced today the sale of portfolio company R2Net, the owner of fast-growing online jewelry retailer JamesAllen.com and Segoma Imaging Technologies, to Signet Jewelers (NYSE: SIG), the world’s largest retailer of diamond jewelry. The acquisition brings together Signet’s jewelry retail platforms with R2Net’s world-class innovation capabilities and digital technology to accelerate Signet’s execution of its Customer-First OmniChannel strategy.
“It has been a true pleasure to partner with the founders and management team at R2Net,” said Matt Spetzler, partner at Francisco Partners. “We are pleased to have been part of the company’s success and to have been able to help the team navigate their strategic landscape to a successful outcome. We wish them continued success as part of Signet.”
R2Net was founded with a vision to leverage the power of the internet and technology to digitize the traditional diamond industry. R2Net has evolved into a robust platform that connects the entire span of the diamond industry’s ecosystem across manufacturers, retailers, and consumers.
“Francisco Partners has been a great partner for us,” said Oded Edelman, CEO of R2Net. “Their team has consistently offered thought leadership and resources far beyond traditional growth capital investors helping us maximize value and grow the business faster.”
“Under Oded’s leadership, JamesAllen.com’s sales grew by two-and-a-half times in the last two years as consumers have embraced the company’s innovative technologies that bring simplicity, selection, pricing transparency and overall value to the jewelry shopping process. We applaud Signet for adding a fast-growing millennial online retail brand to its distinguished portfolio,” added Neil Tolaney, head of consumer internet investing at Francisco Partners.
J.P. Morgan Securities LLC served as financial advisor and Weil, Gotshal & Manges LLP served as legal counsel to Signet, and Meitar Liquornik Geva Leshem Tal served as legal counsel to R2Net and Francisco Partners on this transaction.
R2Net (conceived as "Rough Diamonds to Internet") operates a robust e-commerce and supply chain platform that connects the entire span of the diamond industry’s ecosystem, including manufacturers, retailers and consumers. R2Net owns and operates four distinct brands: JamesAllen.com, Segoma, DMarket (Diamond Market) and Brio Animation Studio. Through its Segoma global photography centers, R2Net provides highly magnified 360° HD images of diamonds to diamond polishers, and then displays them on its DMarket and JamesAllen.com platforms, allowing retailers, manufacturers and consumers to transact digitally without the high expenses and time delays associated with traditional brick & mortar alternatives.
About Francisco Partners
Francisco Partners is a leading global private equity firm, which specializes in investments in technology businesses. Since its launch over 17 years ago, Francisco Partners has raised over $10 billion in capital and invested in more than 200 technology companies, making it one of the most active and longstanding investors in the technology industry. The firm invests in opportunities where its deep knowledge and operational expertise can help companies realize their full potential. For more information, please visit www.franciscopartners.com.