A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ) has completed its acquisition of Hedia, an Israeli retail media company with fiscal 2025 audited revenue of approximately $20 million. The deal, which combines A2Z Cust2Mate's smart cart technology, digital in-store retail media inventory, shopper journey data and measurement capabilities with Hedia's advertiser relationships, sales organization and campaign execution capabilities, marks a significant consolidation in the rapidly growing retail media sector. Hedia will continue operating under its existing brand, with Meron Gal remaining CEO and Ofer Gal remaining chairman.
The acquisition matters because it brings together two complementary sides of the retail media equation: advanced in-store technology and the commercial engine needed to monetize it. A2Z Cust2Mate's AI-powered Smart Cart creates a continuous digital connection with shoppers throughout the in-store journey, enabling retailers and brands to engage shoppers, deliver targeted retail media and offers at the point of decision, and capture real-time data on in-store behavior. Hedia's established advertiser relationships and sales organization provide the demand-side infrastructure to scale that media inventory. For retailers and brands, the combined entity promises more effective ways to monetize the physical store and measure impact closer to the point of purchase.
Under the terms of the agreement, A2Z Cust2Mate paid approximately $8.4 million in cash and issued 833,333 restricted common shares at closing, with approximately $7 million of the cash consideration expected to be funded through a commercial bank term loan. The sellers are eligible for up to approximately $6.7 million in additional performance-based cash consideration tied to agreed targets for 2027 and 2028. Based on Hedia's historical financial results, A2Z estimates Hedia would have contributed approximately $2.3 million in annual adjusted EBITDA, suggesting the acquisition is expected to be immediately accretive to earnings.
This transaction underscores the strategic importance of retail media as a growth driver for A2Z Cust2Mate. By integrating Hedia's capabilities, the company strengthens its position as a connected in-store commerce platform that brings together technology, data and commercial capabilities. The move also reflects broader industry trends, as retailers seek new revenue streams and brands look for more measurable ways to reach shoppers at the point of decision. A2Z Cust2Mate works with retailers, brands and partners across multiple markets to bring connected, data-driven personalized experiences to physical stores, and the addition of Hedia's retail media expertise should accelerate that mission.
Investors and industry observers can access the full press release through https://ibn.fm/oQnFb, and the latest news and updates relating to AZ are available in the company's newsroom at A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ). The announcement was distributed via InvestorWire, a specialized communications platform that is part of the Dynamic Brand Portfolio at IBN. InvestorWire provides services including editorial syndication to 5,000+ outlets and social media distribution.
The acquisition positions A2Z Cust2Mate to capture a larger share of the retail media market, which is increasingly seen as a high-margin revenue opportunity for retailers. By owning both the in-store technology and the media sales capability, the company can offer brands a turnkey solution for reaching shoppers at the precise moment of purchase. As physical stores continue to digitize, the combination of A2Z Cust2Mate's smart cart platform with Hedia's media execution is likely to be closely watched by competitors and investors alike.
