01/07/2016 07:25 EST | Updated 01/07/2017 00:12 EST

Hudson's Bay Co. to buy online shopping business Gilt for US$250 million

TORONTO — Hudson's Bay Co. (TSX:HBC) says it will pay US$250 million cash to buy Gilt Groupe Holdings, Inc., a membership based online retailer.

The Toronto-based retailer says Gilt has more than nine million members and the acquistion is expected to add about US$500 million to HBC's overall revenue this year.

The Gilt acquisition will complement HBC's growing digital business, which is integrated with its store-based operations under banners such as Hudson's Bay, Lord & Taylor and Saks Fifth Avenue.

HBC says it expects the transaction to close by Feb. 1, after getting approval from Gilt's shareholders.




The Canadian Press