A2Z Cust2Mate Solutions has completed its acquisition of Hedia, an Israeli retail media company that generated approximately $20 million of audited revenue in fiscal 2025.
At closing, A2Z paid approximately $8.4 million in cash and issued 833,333 restricted A2Z common shares to the sellers.
The shares are subject to a lockup period of as long as 36 months.
Approximately $7 million of the cash consideration is expected to be financed with a term loan from a commercial bank.
The sellers may also receive up to approximately $6.7 million in additional cash consideration based on achievement of agreed performance targets during 2027 and 2028.
A2Z estimates that Hedia would have contributed approximately $2.3 million in annual adjusted EBITDA based on its historical results.
Founded in 1988, Hedia provides in-store retail media services spanning advertiser sales, campaign planning and execution, shopper marketing, digital signage, electronic shelf labels, physical retail activations, production and nationwide implementation.
Its customer relationships include major retailers and international brands such as Unilever, Kimberly-Clark, Procter & Gamble, Nike and Henkel.
A2Z plans to combine Hedia’s advertising relationships and campaign execution capabilities with Cust2Mate’s smart carts, digital retail media inventory, shopper data and measurement infrastructure.
The combination is intended to create an integrated platform for planning, selling, executing and measuring in-store retail media campaigns.
Hedia will continue operating under its existing brand.
Meron Gal will remain CEO, while founder Ofer Gal will remain Chairman and continue supporting development of future retail media opportunities.
KEY QUOTES:
“The acquisition of Hedia is a major advancement in the development of our retail media business. A2Z has built the technology, smart cart media inventory, shopper journey data and measurement infrastructure. Hedia adds the commercial engine, including advertiser relationships and robust sales capabilities. Together, we can offer a broad, integrated business solution.
We view Hedia as more than an addition to our Israeli business. The company provides an operating model that can support the commercialization of Cust2Mate’s retail media solution as we expand into additional markets. Hedia’s experience and established presence will help us hit the ground running as we build a business positioned to participate in the full retail media value chain.”
Gadi Graus, CEO of A2Z Cust2Mate Solutions
“After building Hedia and its retail media capabilities over many years, we see A2Z as the right partner for the next stage of the company’s development. The physical store is becoming increasingly digital, and A2Z Cust2Mate provides the technology and platform to connect that digital store with shoppers, brands and retailers. By combining Hedia’s retail media expertise and relationships with A2Z’s technology, platform, and growing smart cart footprint, we can expand what Hedia offers today.”
Ofer Gal, Founder and Chairman of Hedia
