US-based brand management company Authentic Brands Group (ABG) has reached a settlement and dismissal of its lawsuit against checkout technology firm Bolt.
As part of the settlement agreement, ABG has been awarded an undisclosed stake in Bolt. It has been reported that ABG’s stake will be less than 5%.
The company will also explore the possibility of implementing Bolt’s technology for more of its portfolio brands over the coming months.
ABG founder, chairman and CEO Jamie Salter said: “ABG looks forward to deepening its ties with Bolt by becoming shareholders under the new leadership of chief executive Maju Kuruvilla and we are excited to continue exploring broader opportunities with our businesses.”
Following the settlement, the companies will continue the partnership by providing one-click checkout services for two of ABG’s brands, Forever 21 and Lucky Brand.
Representatives of both companies declined to provide further details of their agreement.
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Earlier this year, ABG launched a complaint against Bolt for allegedly failing to deliver promised technology.
Bloomberg reported that ABG claimed it had lost more than $150m in online sales when Bolt was integrated with Forever 21.
Bolt was also accused of ‘overstating the nature of its integration’ to imply it had a large network of customers.
Bolt CEO Maju Kuruvilla said: “We are a proud partner of ABG and have enjoyed powering one-click checkout for Forever 21 and Lucky Brand.
“ABG’s commitment to continuing its partnership with Bolt is a testament to their long-term vision of digital innovation and their ethos of identifying best-in-class partners.”
Adidas received the majority of the deal value in cash under the terms of a definitive agreement the companies signed last August.