Early Internet sensation goes private

The $500 million sale of online diamond and jewelry retailer Blue Nile has been completed.



The company was acquired by an investor group comprised of Bain Capital Private Equity, Bow Street and Adama Partners for $40.75 per share in cash. The transaction, first announced on Nov. 7, 2016, was approved by shareholders on Feb.2, 2017.



Founded online in 1999, Blue Nile is credited with disrupting the diamond and engagement ring market, simplifying and bringing transparency to the buying process. It features some 200,000 diamonds that can be matched with over 200 settings and is the largest online seller of diamonds.



In June 2015, the company opened its first brick-and-mortar outpost (knows as a Webroom), in Garden City, New York. It has since opened an additional four locations.



"Blue Nile has disrupted and transformed the way consumers shop for and purchase diamonds and fine jewelry by creating price transparency while simultaneously providing value to suppliers," said Blue Nile chairman, CEO and president Harvey Kanter. "As we enter the next phase of growth, Blue Nile will continue to expand our vision and focus on putting the customer first by reaching them the way they prefer to shop whether it’s a computer, mobile device, or in one of our Webrooms.”



With the transaction completed, trading in Blue Nile’s common stock on the NASDAQ will be suspended effective Tuesday, February 21, 2017.