Bermudian-based Signet Jewelers Limited, the world's leading retailer of diamond jewellery, has signed a definitive agreement to acquire Blue Nile Inc, an online retailer of engagement rings and fine jewellery, for $360 million in an all-cash transaction.

The company said Blue Nile had delivered revenue of more than $500 million in calendar year 2021.

The strategic acquisition of Blue Nile accelerates Signet's efforts to expand its bridal offerings and grow its accessible luxury portfolio while extending its digital leadership in the jewellery category – all to further enhance shopping experiences for consumers and create value for shareholders.

Signet said Blue Nile brought an attractive customer demographic that is younger, more affluent, and ethnically diverse, which would broaden its customer acquisition funnel.

Upon closing, Blue Nile will be strategically positioned at the top tier of Signet's accessible luxury banners along with Jared, James Allen and Diamonds Direct.

"Blue Nile is a pioneer and innovator in online engagement rings and fine jewellery, providing a unique and highly desirable shopping experience for customers," said Signet chief executive officer Virginia C Drosos.

"Adding Blue Nile to our strong and diversified portfolio of banners will further drive our Inspiring Brilliance growth strategy – expanding customer choice, building new capabilities, and achieving meaningful operating synergies that will increase value for both our consumers and shareholders."

The transaction will be funded with cash on hand and is currently expected to close in the third quarter of fiscal year 2023.