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 by the company, combines A2Z Cust2Mate’s smart cart technology, digital in-store retail media inventory, shopper journey data and measurement capabilities with Hedia’s advertiser relationships, sales organization and campaign execution capabilities.
The acquisition underscores the growing importance of retail media networks as retailers seek new revenue streams from their physical stores. By integrating Hedia’s media sales and campaign management with A2Z Cust2Mate’s AI-powered smart carts, the combined entity aims to create a connected in-store commerce platform that engages shoppers at the point of decision. This could enhance the value proposition for retailers and brands looking to monetize in-store touchpoints and measure advertising impact closer to the point of purchase.
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. Additionally, 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 may help preserve Hedia’s advertiser relationships and operational expertise while allowing A2Z Cust2Mate to integrate its technology and data capabilities.
The acquisition aligns with A2Z Cust2Mate’s strategy to transform in-store retail through a connected platform that brings together shopper engagement, retail media, data and in-store intelligence. At the center of this platform is its AI-powered Smart Cart, which creates a continuous digital connection with shoppers throughout the in-store journey. The platform enhances shopping, enables retailers and brands to engage shoppers, delivers targeted retail media and offers at the point of decision, and captures real-time data on in-store shopper behavior.
For investors, the deal represents a significant expansion of A2Z Cust2Mate’s retail media business, building on its digital in-store touchpoints, media inventory, shopper journey data and measurement capabilities. The company believes this combination will create new ways for retailers and brands to engage shoppers, monetize the physical store and measure impact closer to the point of purchase. The acquisition also brings together advanced software, AI, computer vision and purpose-built hardware in a modular platform designed for enterprise-scale deployment and chain-wide operations.
The news comes as retail media continues to gain traction as a high-margin revenue opportunity for retailers. By acquiring Hedia, A2Z Cust2Mate is positioning itself to capture a larger share of this growing market, potentially driving revenue growth, operational efficiency and loss mitigation for its retail partners. The company works with retailers, brands and partners across multiple markets to bring connected, data-driven personalized experiences to physical stores.
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