Bed Bath & Beyond, the online retailer of home based goods, has acquired One Kings Lane for an undisclosed amount. However, Bed Bath & Beyond is a public company and it will have to announce the financial terms of the deal if the deal amount is higher than a considerable 15% of the market cap.
One Kings Lane was valued at $912 Million in its last funding round and as the parent company said that the deal was all cash, a twitter user pointed out that it had less than $600 Million in cash, which means that the acquisition has taken place at a much lesser figure than the valuation of One Kings Lane.
A few days back, there were reports that One Kings Lane could be sold off at even $150 million, which gave it a very disappointing future hope. Considering it had raised around $225 million, the deal has been a disappointing one for the investors which include Kleiner Perkins and Greylock.
Speaking on the development, Dinesh Lathi, CEO of One Kings Lane said that the acquisition was a great opportunity for the customers, employees and investors of the company and added that he hopes to build a better platform with the help of Bed Bath & Beyond.
Steven Tamares, CEO of the acquiring company added that One Kings Lane will be used as a supporting platform for the parent portal and it will have furniture and home decore segment of Bed Bath & More. He strengthened that the acquisition will make people consider the new entity as a complete home solution provider.