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, announced via InvestorWire, marks a significant step in A2Z Cust2Mate's strategy to build a connected in-store commerce platform that integrates smart cart technology with digital retail media. The acquisition combines A2Z Cust2Mate's AI-powered Smart Cart, digital in-store retail media inventory, shopper journey data, and measurement capabilities with Hedia's advertiser relationships, sales organization, and campaign execution capabilities.
Under the terms of the agreement, 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. This continuity is crucial to preserving Hedia's advertiser relationships and sales momentum while integrating its operations with A2Z Cust2Mate's platform.
The acquisition matters because it positions A2Z Cust2Mate as a more comprehensive player in the rapidly growing retail media market. Retail media is increasingly vital for retailers and brands seeking to engage shoppers at the point of decision. By combining A2Z Cust2Mate's smart cart technology—which creates a continuous digital connection with shoppers throughout the in-store journey—with Hedia's media sales and execution capabilities, the combined company can offer a full suite of solutions that enhance shopping, deliver targeted retail media, and capture real-time data on shopper behavior.
This integration allows retailers and brands to monetize the physical store more effectively and measure the impact of their campaigns closer to the point of purchase. The addition of Hedia's $20 million revenue stream and $2.3 million in adjusted EBITDA strengthens A2Z Cust2Mate's financial profile and demonstrates the company's commitment to scaling its retail media business. For investors, this acquisition signals A2Z Cust2Mate's ambition to become a leader in connected in-store commerce, leveraging technology, data, and commercial capabilities to create new revenue opportunities.
The deal also highlights the broader trend of consolidation in the retail media space as companies seek to offer end-to-end solutions that bridge digital and physical retail. A2Z Cust2Mate's modular platform, which combines advanced software, AI, computer vision, and purpose-built hardware, is designed for enterprise-scale deployment and chain-wide operations. With Hedia's sales force and campaign execution expertise, the company is better positioned to help retailers and brands navigate the evolving retail landscape.
As part of its growth strategy, A2Z Cust2Mate continues to work with retailers, brands, and partners across multiple markets to bring connected, data-driven personalized experiences to physical stores. The company's focus on operational efficiency, loss mitigation, and revenue growth aligns with the needs of retailers facing increasing pressure to innovate. The acquisition of Hedia is a clear indication that A2Z Cust2Mate is committed to building a robust ecosystem for in-store commerce.
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