Bermudian-based Signet Jewelers Limited, the world’s largest retailer of diamond jewellery, has agreed to acquire Diamonds Direct USA Inc in a $490 million deal.

Signet said that Diamonds Direct is an off-mall, destination jeweller in the United States with a highly productive, efficient operating model with demonstrated growth and profitability that will be immediately accretive to Signet post-closing.

It said that Diamonds Direct's strong value proposition, extensive bridal offering and customer-centric, high-touch shopping experience is a destination for younger, luxury-oriented bridal shoppers.

Signet said that it plans to drive operating synergies by leveraging scale in purchasing, targeted marketing, connected commerce and jewellery services.

Signet chief executive Virginia C Drosos said: "The accretive addition of Diamonds Direct to our portfolio will further drive shareholder value with its distinct bridal-focused shopping experience and add a new entry point as we build lifetime customer relationships and strive to reach our $9 billion revenue goal over time.

“The Signet team continues to deliver strong business performance as part of our Inspiring Brilliance growth strategy. We are executing on our strategic priorities and investing in our business, while also returning cash to shareholders through our previously announced reinstated dividend and share buy-back programme.”

Signet said that the all-cash transaction, which is expected to close in the fourth quarter of fiscal 2022, is subject to customary closing conditions and regulatory approval.

After the acquisition, Signet said, Diamonds Direct’s leadership team will remain intact with president Itay Berger reporting directly to Ms Drosos.

As a sign of commitment to the long-term vision of Signet and Diamonds Direct, the company said, Mr Berger and other key Diamonds Direct executives have agreed, subject to the completion of the transaction, to invest a portion of their transaction proceeds in Signet shares.

Signet is a Bermuda-exempted company limited by shares. It has been registered on the island since 2008.