Retail media merger expands smart cart capabilities
A2Z Cust2Mate Solutions Corp. has acquired Israeli retail media company Hedia for $15 million, merging smart cart technology with retail media capabilities. The deal includes $8.4 million in cash and the rest in shares, with potential earn-outs. Hedia reported $20 million revenue in 2025. The merger aims to strengthen A2Z's position in retail media in Israel and globally.
A2Z Cust2Mate Solutions Corp. (Nasdaq: AZ) has acquired Israeli retail media company Hedia for $15 million. The deal includes $8.4 million in cash and the remainder in A2Z shares locked up for 36 months, with potential earn-outs of up to $6.7 million tied to 2027-2028 targets. Hedia, founded in 1988, reported approximately $20 million in revenue in 2025. The merger combines Cust2Mate's smart cart technology, digital in-store retail media inventory, shopper journey data, and retailer relationships with Hedia's advertiser relationships, sales organization, and campaign execution capabilities. The two companies will operate separately, with Hedia founder Ofer Gal remaining as executive chairperson and Meron Gal as CEO. The smart carts, featuring a 13-inch screen, identify customers and display personalized ads and offers based on purchasing history, while also weighing products and incorporating anti-theft cameras. The carts are already deployed in Israeli supermarket chains Yochananof, Super Sapir, and Neto Hisachon. A2Z raised $100 million from US financial institutions in 2025. CEO Gadi Graus described Hedia as adding a commercial engine, while Ofer Gal called A2Z the right partner for the next stage. The merger is a strategic move to strengthen A2Z's standing in the Israeli retail media market and support global expansion.