Online pet retailer Chewy has agreed to acquire veterinary platform Modern Animal, a move aimed at strengthening its presence in the growing pet healthcare sector and expanding its network of veterinary clinics.
The company said the acquisition will significantly increase the scale of its veterinary services business. Following the transaction, Chewy Vet Care’s footprint will expand from 18 to 47 locations, integrating Modern Animal’s network of clinics into its operations.
Chewy expects the deal to contribute more than $125 million in annualized run-rate revenue, while also enhancing the company’s broader strategy to build a comprehensive ecosystem around pet health services.
Chief Executive Sumit Singh said the acquisition fits with the company’s ambition to provide integrated services for pet owners. He described Modern Animal as a platform that “perfectly complements our strategy to become the preeminent end-to-end pet health ecosystem, utilizing both owned and asset-light models.”
Beyond expanding its physical clinic network, Chewy plans to incorporate Modern Animal’s proprietary technology platform into its veterinary operations. The company believes the integration will help improve operational efficiency and increase average revenue per user across its veterinary customer base.
Chewy also expects the deal to strengthen customer engagement by offering a broader range of services to pet owners already using its online retail platform. According to the company, combining veterinary services with its existing pet products business could boost net sales per active customer by roughly 15% to 20% within its veterinary network.
The company anticipates additional benefits from cross-selling services, stronger customer retention and higher engagement among Modern Animal’s membership base.
Chewy said the acquisition is expected to contribute positively to earnings within the first year after closing. The transaction is anticipated to close during the company’s second fiscal quarter, although financial terms of the deal were not disclosed.
Following the announcement, Chewy’s board also approved a $500 million increase to its share repurchase program.
