A2Z Cust2Mate buys Israeli retail media firm Hedia for $8.4M
What's the deal? A2Z Cust2Mate SolutionsDealroom has a profile for this one. Try Dealroom → (NASDAQ: AZ), a smart retail technology company, has completed its acquisition of Hedia, an Israeli in-store retail media business. At closing, A2Z paid roughly $8.4 million in cash and issued 833,333 restricted common shares to the sellers, subject to a lockup of up to 36 months.
The terms: About $7 million of the cash is expected to come from a commercial bank term loan at market rates. The sellers can also earn up to roughly $6.7 million in additional performance-based cash.
What Hedia does: Founded in 1988, Hedia offers end-to-end in-store retail media — advertiser sales, campaign planning, digital signage, electronic shelf labels, and physical activations. It works with leading Israeli retailers and global brands including Unilever, Procter & Gamble, Nike, and Henkel.
The numbers: Hedia is profitable and cash-generating, with audited FY25 revenue of about $20 million. That revenue dwarfs the cash paid at closing, underscoring why A2Z framed the deal as adding a ready-made commercial engine.
What's the endgame? A2Z wants to pair Cust2MateDealroom has a profile for this one. Try Dealroom →'s smart cart technology, in-store media inventory, and shopper data with Hedia's advertiser relationships and sales organisation. The goal is an integrated platform to plan, sell, run, and measure in-store campaigns across carts, screens, shelf labels, and activations.
Why now? "The physical store is becoming increasingly digital," said Ofer Gal, founder and chairman of Hedia, pointing to the need for technology that connects stores with shoppers, brands, and retailers. A2Z chief executive officer Gadi Graus called the deal "a major advancement," adding that Hedia "adds the commercial engine, including advertiser relationships and robust sales capabilities."
What changes? Hedia will keep its brand. Meron Gal stays on as chief executive officer, leading Israeli operations, while Ofer Gal remains chairman and stays involved in future retail media opportunities.
The signal: In-store retail media is emerging as a battleground as physical shops digitise their shelves and aisles. By acquiring a profitable operator with blue-chip advertiser ties, A2Z buys both revenue and an operating model it can replicate as it expands into new markets.
Read more: prnewswire.com
