Nike Inc. (NYSE: NKE) has acquired predictive analytics startup Celect to help the shoemaker clean up its inventory and boost its predictive analytics strengths. Celect is based in Boston and was founded six years ago by Massachusetts Institute of Technology (MIT) professors Vivek Farias and Devavrat Shah.
Its cloud-based analytics platform helps retailers optimize their inventories with hyper-local demand predictions. Nike said Celect would become part of its global operations team, but did not disclose the terms of the deal.
“With the acquisition of Celect, Nike greatly accelerates our digital advantage by adding a platform developed by world-class data scientists,” commented Eric Sprunk, Nike, chief operating officer in a press release. “As demand for our product grows, we must be insight-driven, data-optimized and hyper-focused on consumer behavior. This is how we serve consumers more personally at scale.”
Sprunk said the maker of athletic apparel chose to buy Celect instead of spending two to three years attempting to create the same platform in-house. “It’s really difficult work … predicting the retail shopping patterns and behavior. … This [acquisition] gets us much more accelerated,” CNBC quoted Sprunk as saying.
Celect’s total capital investment currently stands at $30.2 million after four funding rounds. Last December, the startup received $15 million from a Series C round, which was led by Fung Capital and NGP Capital.
“We’re thrilled to be joining the Nike team, adding our unique and innovative capabilities to the data and analytics foundation they’ve been building over the years,” said John Andrews, Celect chief executive officer.
Nike’s latest acquisition comes months after the sneaker maker bought two innovative firms to help speed up its digital strategy. The sneaker maker acquired Zodiac Inc., a New York-based consumer data analytics firm in March 2018. A month later, it acquired Tel Aviv, Israel-based Invertex Ltd., a pioneer in the use of 3D technology to customize shoes.
Nike Inc Profile
Nike is the largest athletic footwear and apparel brand in the world. It designs, develops, and markets athletic apparel, footwear, equipment, and accessories in six major categories: running, basketball, soccer, training, sportswear, and Jordan Brand. Footwear generates about two thirds of its sales.
Nike’s brands include Nike, Jordan, Converse (casual footwear), and Hurley (action sports). Nike sells products worldwide and outsources its production to more than 400 factories in more than 40 countries. Nike was founded in 1964 is based in Beaverton, Oregon. – Warrior Trading News
