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 transaction, announced by A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ), 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. The acquisition is significant because it brings together two complementary sides of the fast-growing retail media market: advanced in-store technology and established advertising sales and execution.
Under the terms of the deal, A2Z Cust2Mate paid approximately $8.4 million in cash and issued 833,333 restricted common shares at closing. Approximately $7 million of the cash consideration is 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.
Hedia will continue operating under its existing brand, with Meron Gal remaining CEO and Ofer Gal remaining chairman. The continuity of leadership is important because it preserves Hedia's advertiser relationships and sales organization, which are central to the combined company's retail media strategy. The acquisition combines A2Z Cust2Mate's AI-powered Smart Cart, which creates a continuous digital connection with shoppers throughout the in-store journey, with Hedia's retail media inventory and campaign execution capabilities. This integration enables retailers and brands to engage shoppers, deliver targeted retail media and offers at the point of decision, and capture real-time data and intelligence on in-store shopper behavior.
Retail media is a growing part of A2Z Cust2Mate's business, building on its digital in-store touchpoints, media inventory, shopper journey data, and measurement capabilities. The acquisition is strategically important because it accelerates the company's ability to monetize the physical store and measure impact closer to the point of purchase. A2Z Cust2Mate combines advanced software, AI, computer vision, and purpose-built hardware in a modular platform designed for enterprise-scale deployment and chain-wide operations. The company works with retailers, brands, and partners across multiple markets to bring connected, data-driven personalized experiences to physical stores and create new opportunities for revenue growth, retail media monetization, operational efficiency, and loss mitigation.
For investors, the deal adds scale and recurring revenue potential to A2Z Cust2Mate's platform, while also introducing execution risk related to integration and the performance-based earnout. The acquisition is expected to strengthen the company's competitive position in the retail media space, where retailers are increasingly looking to monetize their physical stores and capture a share of the growing digital advertising market. The full press release can be viewed at https://ibn.fm/oQnFb.
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