Clayton Utz has advised Woolworths Group (Woolworths) on bringing The Quantium Group Holdings Pty Ltd (Quantium) into Woolworths’ ownership by moving to a majority stake in the business – reported as the single biggest investment in data analytics by an Australian retailer.
Led by Corporate partner Geoff Hoffman, a core Clayton Utz team comprising special counsel Sidney Tang and lawyers Megan Williams, Belinda Slack and Natasha Cutler (with technical input from IP & Technology, Workplace Relations and Financial Services lawyers), worked with Woolworths’ accounting and commercial advisers to structure the arrangements to increase Woolworths’ existing 47 per cent shareholding in Quantium to 75 per cent, for a purchase price of AUD$223 million.
The team’s work included legal due diligence on Quantium’s Australian, US and Indian operations, as well as preparing the share sale agreement and shareholders deed. Transaction documents were signed on 20 April 2021, with completion expected to occur prior to the end of FY21. Following completion, Quantium will form part of Woolworths Group, with a new business unit called Q-Retail to bring together the pair’s collective data science and advance analytics capabilities.
Lead partner Geoff Hoffman said:
We’re proud to have worked with Woolworths to help it achieve yet another impressive milestone in its evolution as a business.
Woolworths originally acquired 50 per cent of Quantium in 2013, for AUD$20 million. Quantium’s founders will retain a 25 per cent stake in the business.
The transaction reflects Woolworths’ aspirations to capitalise on Quantium’s advanced data analytics capabilities to unlock value across the retailer’s entire retail ecosystem – ie to better understand its customers and deliver a tailored customer experience.