Smart Carts Firm A2Z Acquires Retail Media Company Dieh for $15 Million
Translated & summarized from Globes by baba
A2Z Cust2Mate is acquiring Dieh for $15 million, integrating smart cart technology with retail media sales capabilities. The deal includes cash and stock, with potential performance-based bonuses for Dieh's sellers. The combined entity aims to enhance personalized advertising and shopper experience in physical stores. Ofer Gal will continue as Dieh's chairman, and Maron Gal as CEO.
The story in 5 lines · by baba
- A2Z Cust2Mate acquires Dieh for $15 million, merging smart cart tech with retail media operations.
- The deal includes $8.4 million cash upfront and restricted A2Z shares, with potential future payments.
- The combined company will integrate smart cart personalization, digital advertising, and sales execution.
- Ofer Gal will remain Dieh's active chairman, and Maron Gal will continue as CEO.
- The acquisition aims to strengthen A2Z's position in Israel and expand into global markets.
A2Z Cust2Mate, a Nasdaq-listed company specializing in smart shopping carts, has acquired Dieh for $15 million in a significant move within the retail media sector. The deal includes an upfront payment of approximately $8.4 million in cash and the issuance of roughly 833,000 restricted A2Z ordinary shares, subject to a 36-month lock-up period. Dieh's sellers may also receive an additional $6.7 million in cash, contingent on meeting performance targets between 2027 and 2028.
The acquisition aims to integrate Cust2Mate's smart cart technology, in-store digital advertising spaces, and measurement capabilities with Dieh's sales network, advertiser relationships, and campaign execution expertise. Despite the merger, both companies will continue to operate independently. Ofer Gal, founder of Dieh, will serve as active chairman, and Maron Gal will remain CEO.
Cust2Mate's smart carts are designed to identify shoppers, offer personalized advertisements and promotions on a 13-inch screen based on purchase history, and potentially reduce checkout queues. The carts can also weigh products and are equipped with cameras to deter theft. A2Z's Connected In-Store Commerce platform is already implemented in carts used by chains like Yohananof, Super Sapir, and Neto Saving. In 2025, A2Z raised about $100 million from U.S. institutional investors.
Dieh brings approximately 40 years of experience, an established sales network for advertisers, and expertise in retail media operations and in-store campaign execution. This merger is expected to strengthen A2Z's position in the Israeli retail media market and facilitate global expansion. Ofer Gal emphasized that the partnership combines Dieh's deep retail knowledge with A2Z's advanced technological capabilities, enabling the development of new solutions for retailers worldwide while maintaining Dieh's identity. He also highlighted the future of physical retail, stating that despite the focus on e-commerce, 85% of purchases still occur in brick-and-mortar stores.