MySize Inc (NASDAQ:MYSZ) said it has acquired Spain-based Naiz Fit, a provider of software-as-a-service technology solutions, adding revenues and a high-profile European customer base.
In return, Naiz Fit’s customers will gain access to a portfolio of products and solutions delivered by a team of industry leaders with a deep understanding of the fashion ecommerce retail landscape, MySize said.
Israel-based MySize said it is purchasing Naiz Fit for US$500,000 in cash and six million shares of MySize common stock, and up to an additional $1,550,000 in future cash based on the achievement of performance-based milestones plus a shortfall payment of approximately $450,000 payable in 2026.
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MySize CEO Ronen Luzon said the combination of the companies’ sizing solutions will allow it to realize economies in sales and marketing, while delivering unparalleled sizing technology to fashion retailers.
"We believe the acquisition will be highly accretive in the near and long term as well as being a strategic play. By leading the consolidation of sizing solutions, MySize is positioning to build greater and broader offerings and become the leading technology provider in the industry," Luzon said in a statement.
Naiz Fit is expecting an estimated $400,000 in 2022 revenues with substantial increases anticipated for 2023. MySize said it expects the combined Naiz Fit and MySizeID sizing solution revenues to contribute an additional $1 million revenues in 2023.
Naiz Fit's technology acts as a digital tailor by obtaining more than 20 body measurements using its proprietary AI and computer vision capabilities by transforming simple images into body measurements.
For customers who do not want to use photos, Naiz Fit uses statistical modeling algorithms to determine size and fit based on height, weight, age, gender, and fit preference. Convolutional neural networks allow the company's technology to extract direct body measurements and body morphologies with the highest accuracy, according to MySize.
The next project will be to launch Naiz Fit's latest product, Smart Catalogue, which is designed to help retail product and design teams make informed decisions for their collections based on real-time customer data, MySize said.
With over 40 clients in Spain, Italy, Germany, and France, Naiz Fit brings a substantial customer base including fashion houses Desigual, Moschino, El Ganso, Philosophy, Alberta Ferretti, Silbon, and Boglioli Milano.
Naiz Fit co-founder Borja Cembrero Saralegui said: "Our current customers will benefit significantly from Naiz Fit joining forces with MySize, a Nasdaq-listed company with global reach serving some of the largest retailers in the world, and offering complementary products such as FirstLook Smart Mirror. Our pure ecommerce and hybrid apparel retailer clients will have access to the best portfolio of solutions to improve their business economics."
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