Purple Innovation Purchases a Sleep and Wellness Company In an All-Stock Transaction

Purple Innovation

Combination Widens Product Offerings, Unifies Intellectual Property, and Expands Distribution

Purple Innovation (NASDAQ:PRPL)

In an all-stock deal, Purple Innovation (NASDAQ:PRPL) announced on Thursday that it had acquired Advanced Comfort Technologies, also known as Intellibed.

Providing gel-based mattresses that are specifically engineered for optimal back support, spinal alignment, and pressure point alleviation, Intellibed is a premium sleep and health wellness brand. In 2021, the company claimed revenue of around $50 million.

In exchange, Purple has committed to issuing its 8 million shares to the security holder of Intellibed, subject to changes as an additional 1.5 million shares could be issued based on the stock price over the following 18 months.

According to projections, the acquisition won’t dilute earnings per share. According to ob DeMartini, chief executive officer of Purple, “Intellibed has licensed some aspects of our gel technologies for many years. Therefore, this acquisition allows us to consolidate our IP under one roof while at the same time enhancing Purple’s manufacturing capabilities and financial profile. In the premarket, PRPL stock is down 0.7%.


The manufacturer of high-end, luxury gel-based mattresses known as Intellibed, Advanced Comfort Technologies, Inc., has been acquired by Purple Innovation, Inc. today. Subject to customary working capital and other adjustments, 8 million shares of Purple’s Class A common stock will be given as consideration to the security holders of Intellibed in a merger. Depending on the price of the Class A common stock during the next 18 months and the provisions of the merger agreement, Purple may issue an additional 1,500,000 shares of Class A common stock to Intellibed security holders.

With an estimated $50 million in revenue in 2021, Intellibed is a high-end sleep and health wellness firm that sells gel-based mattresses that are specifically engineered for pressure point alleviation, optimal spinal alignment, and maximum back support. In addition to expanding Purple’s revenue base and enhancing its current product range, the acquisition of the Intellibed product line is anticipated to have minimal impact on earnings per share. 

Featured Image – Megapixl © Bialasiewicz 

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