Signet Jewelers will acquire R2Net for $328 million in an all-cash transaction. R2Net is the owner of, an online jewelry retailer, and Segoma Imaging Technologies, which provides R2Net with machinery that enables delivery of a next-generation digital shopping experience for jewelry.

The acquisition will bring together Signet’s jewelry retail business with R2Net’s digital technology to create an enhanced customer shopping experience and accelerate Signet’s execution of its Customer-First OmniChannel strategy while adding a fast-growing millennial online retail brand to Signet’s portfolio.

“This is a highly strategic acquisition for Signet. The James Allen brand and R2Net’s technologies and innovative approach present a unique opportunity to rapidly enhance our digital capabilities and create a distinctive customer shopping experience which more seamlessly integrates our digital and physical retail platforms,” said Virginia C. Drosos, CEO of Signet.

New York City-based R2Net was founded in 2006 by Oded Edelman, James Schultz, Michele Sigler and Dean Lederman. R2Net’s innovative technologies include proprietary 360° Diamond Display Technology, Virtual Ring Sizer and Ring Try-On mobile application.

“We founded with a mission to offer beautiful rings, simplicity, selection, pricing transparency and overall value to consumers online,” said Edelman, CEO of R2Net. “By joining forces with Signet, we believe we will be able to accelerate the growth of and our adjacent R2Net businesses while continuing to build on our unique culture and technology.”

The transaction is currently expected to close in the third quarter of fiscal 2018 subject to customary closing conditions and regulatory approval and will be financed with a term loan provided by JPMorgan Chase Bank, which is expected to be repaid in full by the end of fiscal 2018.

Following the acquisition, R2Net brands will largely operate as an independent division of Signet and its current leadership team will remain intact.

J.P. Morgan Securities served as financial advisor and Weil, Gotshal & Manges served as legal counsel to Signet. Meitar Liquornik Geva Leshem Tal served as legal counsel to R2Net on this transaction.