The Japanese tech giant, SoftBank to invest $1.6 billion in technology division of Beauty and lifestyle e-commerce company THG.
The deal will give SoftBank Management 19.9% of THG ingenuity. It values THG Ingenuity at $6.3 billion. Which is what parent firm THG was valued at when it was on London stock Exchange last year.
SoftBank Management is taking a $730 million stake in THG itself, which is currently raising $1 billion in fresh equity to fuel its world wide expansion efforts.
In the year 2020 the sales of THG increased its value to more than 40% to £1.6 billion ($2.3 billion) because of which it recorded pretax loss of around £535 million
The lifestyle brand THG also owns beauty retailer Lookfantastic, beauty box service and the makeup brand Illamasqua.
For $255 million THG has agreed to buy Bentley Laboratories LLC which is based in New Jersey
The THG Group said:
“THG Ingenuity is a yet-to-be-formed, THG owned and controlled subsidiary group, comprising the Ingenuity platform IP and operating trade and assets,”
“To effect the SBM investment, THG Ingenuity will be required to be a separate legal entity capable of receiving the investment and this process has already commenced.”
About SoftBank
SoftBank is a Japanese multinational conglomerate holding company which is headquartered in Tokyo,
It owns stake in energy, many technology and financial companies, it also runs world’s largest technology focused venture capital fund with over $100 billion in capital.
The company also has telecommunications subsidiary SoftBank Corp which provides both mobile and fixed-line services.
About THG
THG know as The Hut Group is a British e-commerce company which is headquartered in England.
It also operates international websites selling Fast moving consumer goods direct to consumer through its e-commerce platform.
Sales of The Hut Group’s has predominantly been outside the United Kingdom and also the second largest publicly traded company in Japan after Toyota.
