Bermuda-based Signet Jewelers Limited, the world's largest retailer of diamond jewellery, has finalised its acquisition of Diamonds Direct USA Inc for $490 million in cash.

The company said that this reflects approximately a 1.1x multiple on annualised revenue and approximately a 7.1x multiple on annualised ebitda.

Diamonds Direct currently operates 22 locations with mature stores — those opened in 2018 or earlier — having a median annualised revenue of approximately $18.5 million over the last 12 months.

Virginia C Drosos, chief executive officer of Signet, said: "Today, we officially welcome Diamonds Direct to the Signet team. This immediately accretive acquisition accelerates our growth strategy and gives our customers even more choice across our differentiated banners.

"Diamonds Direct strategically expands our market in accessible luxury and bridal, provides access to a new customer base and furthers our opportunity to build lifetime customer relationships.

“Just as we accelerated our digital transformation using learnings from our acquisition of fast-growing digital pure-play James Allen, we believe we can further drive modern consumer experiences learning from Diamonds Direct's differentiated model as they have consistently and profitably grown revenues in highly productive store formats.

“Our intention is to grow Diamonds Direct while driving operating margin expansion over time through operating synergies in purchasing, targeted marketing, connected commerce and jewellery services."

Signet operates approximately 2,800 stores primarily under the name brands of Kay Jewelers, Zales, Jared, H. Samuel, Ernest Jones, Peoples, Piercing Pagoda, JamesAllen.com, Diamonds Direct and the jewellery subscription service, Rocksbox.