Online shopping website Zulily will be acquired by Liberty Interactive Corporation for around $2.4 billion. Liberty Interactive Corporation is the owner of TV shopping network QVC and the company aims to create an e-commerce platform worthy to rival the current powerhouse Amazon.
Zulily was launched in 2010 and initially offers flash sales that last for a few days. During its early days, the company sells high-end toys, clothes and baby gears. After its successful run for a couple of years, the company went public in November 2013.
At the start of 2014, Zulily reported that it has nearly 5 million members. The company is also one of a handful of retailers that has exceeded the $1 billion annual earning mark. The company's unprecedented annual growth went from $331 million in 2012 to $1.2 billion in 2014.
In a press release picked up by CNet, Liberty Interactive Corporation said, "Zulily's younger customer demographic, personalization expertise and e-commerce capabilities will boost QVC."
Before the recent acquisition, Zulily received a $150 million stake from Chinese company Alibaba in May. The investment gave the company a big boost in order to compete with other flash-sale websites like One Kings Lane, Rue La La and Gilt.
Liberty Interactive Corporation will buy Zulily's stocks at roughly $18.75 per share, according to Fortune.
Board members of both companies have already agreed with the terms of the deal and negotiations are expected to be completed before the end of 2015.
After the news of the acquisition broke out, Zulily shares went up by around 50 percent and closed at $5.90.