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 transaction combines A2Z Cust2Mate’s AI-powered 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 deal matters because it signals a significant consolidation in the emerging retail media space, where physical stores are increasingly viewed as high-value advertising channels. By integrating Hedia’s proven media sales engine with A2Z’s connected in-store commerce platform, the combined company aims to offer retailers and brands a seamless way to engage shoppers at the point of decision, measure impact closer to the point of purchase, and unlock new revenue streams from the physical store.
The financial terms reflect a disciplined but strategic bet on retail media growth. A2Z paid approximately $8.4 million in cash and issued 833,333 restricted common shares at closing, with about $7 million of the cash consideration expected to be funded through a commercial bank term loan. 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. These figures suggest the acquisition is accretive and structured to align seller incentives with future performance, reducing upfront risk while preserving upside.
Hedia will continue operating under its existing brand, with Meron Gal remaining CEO and Ofer Gal remaining chairman. That continuity is important because it preserves Hedia’s advertiser relationships and sales execution capabilities, which are critical to scaling retail media. For A2Z, the acquisition deepens its retail media business, building on its digital in-store touchpoints, media inventory, shopper journey data and measurement capabilities. The company’s smart cart creates a continuous digital connection with shoppers throughout the in-store journey, enabling targeted offers and real-time data on shopper behavior. Adding Hedia’s media sales and campaign execution expertise transforms A2Z from a technology provider into a full-fledged retail media network, capable of monetizing physical stores at enterprise scale.
The broader implications for retailers and brands are substantial. As retail media networks proliferate, the ability to deliver measurable, closed-loop advertising in physical stores remains a key differentiator. A2Z Cust2Mate’s modular platform, which combines advanced software, AI, computer vision and purpose-built hardware, is designed for chain-wide deployment. By integrating Hedia’s capabilities, the company can offer brands a more complete solution—from in-store engagement to campaign measurement—helping retailers boost revenue growth, operational efficiency and loss mitigation. This acquisition also positions A2Z to compete more effectively against other retail media players, as it now controls both the technology layer and the media sales layer. For investors, the deal demonstrates management’s commitment to scaling a high-margin, recurring revenue stream within the physical retail ecosystem.
To view the full press release, visit https://ibn.fm/oQnFb. The latest news and updates relating to AZ are available in the company’s newsroom. As retail media continues to grow, A2Z Cust2Mate’s acquisition of Hedia could serve as a blueprint for how technology providers and media companies converge to unlock the full value of in-store shopper engagement.
