Woolworths has tightened its control of retail data analytics firm Quantium and will use the controlling stake in the start-up to build a completely separate division of the retailer.
Woolies told the ASX on Tuesday that it had spent another $223 million to lift its stake in Quantium from 47% to 75% and as a result the two will create a standalone analytics-focused unit within Woolworths called Q Retail.
Quantium was founded in 2002 and uses data and artificial intelligence to help companies better understand customer behaviour.
Woolworths acquired a 50% stake in Quantium in 2013 for $50 million. Since then, the business has expanded significantly and gained a number of high-profile clients such as Walmart, Mondelez and NAB bank.
Quantium will continue to work with these clients despite being majority-owned by Woolworths, with the company saying it would “maintain its strong confidentiality agreements”.
Woolworths chief executive Brad Banducci will join the Quantium board as chairman and Woolworths director Peter Tonagh will remain on the board.
“Advanced analytics is key to improving the experiences, ranges and services we provide to our customers and the support we provide to our teams and suppliers,” Mr Banducci said.
“The way we gather data, interpret it, and protect it, is becoming ever more important.
“Through this transaction, we aspire to bring together Quantium’s advanced analytics capability and Woolworths Group’s retail capabilities to unlock value across our entire retail ecosystem.”
Woolies said Q-Retail will focus on delivering the retailer’s Group’s Advanced Analytics Plan and commercialising retail products globally.
Woolworths told the ASX that appointed former Boston Consulting Group executive Amitabh Mall to head up Q Retail division.
Mr Mall will also become Woolworths’ new chief analytics officer. Quantium’s current chief executive and co-founder Adam Drussi will continue to run the business.
Woolies shares eased 0.9% to $41.63 in line with the fall in the wider market.
