The three partners will form a joint venture to develop and market retail IoT solutions
SES-imagotag (Euronext: SESL, FR0010282822), the global leader in Electronic Shelf Labels (ESL) and retail IoT solutions, BOE Technology, the world leader in semiconductor displays as well as an IoT company providing intelligent interfaces (Shenzen SHE:000725), and JD Digits, a leading Chinese digital technology company, announced today that they have signed an agreement to form a joint venture to provide smart solutions to support the digitalization of physical retail.
China is a key market in meeting those ambitions. It is the largest digital nation in the world with nearly 800 million Internet users and has the highest penetration rate for e-commerce and mobile payments. The country is at the leading-edge of the digital transformation of physical retail implementing a true online to offline convergence model, notably enhanced by Internet powerhouses' companies.
First established under JD.com, China's largest retailer, JD Digits began operating as an independent business group in 2013. With its expertise in big data, artificial intelligence (AI), the Internet of Things (IoT), and blockchain, JD Digits is reshaping the face of many sectors including finance, urban computing, agriculture, campus services, and digital marketing. JD Digits believes cutting edge technologies will help the industry improve its efficiency and bring higher quality services to consumers worldwide.
For its part, BOE, the world leader in semiconductor displays, is also now the global leader in IoT physical retail thanks to its investment of over €300-million in SES-imagotag. The three companies will combine their know-how and technologies to develop solutions to improve in-store efficiency, and to achieve more effective collaboration between brands and retailers, and in-store merchandising. Their technology will also enable retailers POS promotions, stock optimization and on-shelf availability by digitalizing the supply chain from end to end, also enriching store data and boosting shopper connectivity.
This alliance will further aid SES-imagotag's penetration of the Chinese market by facilitating cooperation and access to digital start-ups, brands and chains in the JD Digits' ecosystem, as well as with its powerful network of shareholders and stake-holdings.
Once the definitive investment protocol is signed, the joint venture company will be formed in China; SES-imagotag will hold a 51% stake in the entity, with a 15% share for BOE and a 34% share for JD Digits. The total investment will be approximately US $30 million in capital over several years. The joint venture's Board of Directors will consist of seven members, four of which will be appointed by SES-imagotag. The Group will therefore have the control of the joint venture and its results will be consolidated in SES-imagotag's financial statements. The completion of this transaction, which is subject to regulatory clearances, is anticipated by the end of H1 2019.
Thierry Gadou, Chairman and CEO of SES-imagotag comments: “This joint venture sets
SES-imagotag at the heart of a powerful tech ecosystem in the fastest growing and most digital region in the world. Since entering into the alliance with BOE, we have a strong team in place in China and have launched pilot projects with more than 30 retailers in over 150 stores. Partnering with JD Digits shows that BOE and SES-imagotag are not only seen as leaders in their own fields, but are also seen as being at the forefront of the entire digital technology transformation of retail. The JV will also help us convert pilot projects into successful roll-outs in the region, a key milestone towards achieving the Group's strategic plan VUSION 2022 that targets 50% of sales from outside Europe by 2022.”
For 25 years, SES-imagotag has been the trusted partner of retailers for in-store digital technology. SES-imagotag, the worldwide leader in smart digital labels and pricing automation, has developed a comprehensive IoT and digital platform that delivers a complete set of services to retailers. The SES-imagotag solution enables retailers to connect and digitally transform their physical stores; automate low-value-added processes; improve operational efficiency; inform and serve customers; ensure information integrity to continuously optimize on-hand inventory; prevent stock-outs and create an omni-channel service platform that builds loyalty and meets evolving consumer expectations.
SES-imagotag is listed in compartment B of the Euronext™ Paris.
Ticker: SESL – ISIN code: FR0010282822 – Reuters: SESL.PA – Bloomberg: SESL
About BOE Technology Group
BOE is a global leader in the semiconductor display industry as well as an IoT company providing intelligent interfaces. BOE's core businesses are Display and Sensor Devices, Smart Systems and Healthcare Services. BOE's display and sensor products are widely used in a broad spectrum of applications such as mobile phone, tablet, notebook, monitor, TV, vehicle display, digital information display, healthcare, finance and wearable devices. Smart Systems business provides IoT integrated solutions for various industries such as retail, transportation, finance, education, art, medical care, etc. Healthcare services combine medicine and life science, and is committed to developing mobile healthcare, regenerative medicine, and digital hospitals. In total, BOE has over 60,000 usable patents. BOE is listed on the Shenzhen stock exchange (SHE: 000725).
About JD Digits
JD Digits was formerly known as JD Finance until it was comprehensively upgraded and rebranded in November 2018. Its operational purpose is to connect finance and real industry by using digital technology, boosting the influence of the Internet, enhancing the digital and intelligent development of industries, foster the development of the real economy and create greater social value.
With its cutting-edge technologies and expertise in big data, AI, IoT and blockchain, JD Digits has been involved in many fields, from finance, urban computing, agriculture, campus services and digital marketing. In the future, JD Digits will enter into more real industry sectors and will more deeply explore current business patterns and developing trends.
JD Finance will continue to operate as an independent sub-brand of JD Digits, and integrate digital finance-related businesses within the company.