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Shipt Sells to Target for $550 Million

Marks second major delivery-service transaction for Cooley in 2017

San Francisco – December 14, 2017 – Cooley advised Shipt, a leading online same-day delivery platform, on its sale to Target for $550 million in cash. The deal is expected to close before the end of the year. Jamie Leigh, partner and co-chair of Cooley’s M&A group, led the team advising Shipt on the transaction.

Under the terms of the sale, Shipt will operate as a wholly owned Target subsidiary, and will continue to run as an independent business. The acquisition will enable Target to leverage Shipt’s proprietary technology to bring same-day delivery services to nearly half its stores by early 2018. At launch, Target plans to offer same-day delivery of groceries, essentials, home, electronics and other products. According to Target, the offering for same-day delivery will expand over time and it hopes to include all major product categories by the end of 2019.

“We are very excited to partner with Target, one of the most loved retailers in the country with a reputation for supporting local communities,” said Bill Smith, founder and CEO of Shipt, in a news release. “We look forward to introducing Target guests to the convenience of our same-day delivery services, with the level of personal attention only Shipt can provide.”

Founded in 2014, Shipt is the nation’s fastest-growing online grocery marketplace, working with leading retailers and local stores to deliver groceries via a convenient app. In September, Cooley advised Plated on its sale to Albertsons, marking the first acquisition of a meal delivery service by a traditional grocer.

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Related Contacts
Jamie Leigh  Partner San Francisco
Charles Haley  Partner Palo Alto
Thomas Connors  Partner Boston
Todd Gluth  Partner San Diego
Barbara Mirza  Partner Los Angeles – Santa Monica, Los Angeles – Downtown
Wendy Brenner  Partner Palo Alto, Los Angeles – Santa Monica
Jacqueline Grise  Partner Washington, DC
Julia R. Brinton  Associate Washington, DC