Chewy Acquires Modern Animal for $125M Annual Revenue Boost
Event summary
- Chewy to acquire Modern Animal, a tech-forward veterinary platform with 29 clinics and 24/7 virtual care.
- Deal adds $125M in annualized revenue, expanding Chewy Vet Care footprint from 18 to 47 locations nationwide.
- Expected to be EBITDA-dollar neutral in 2026, with contribution starting in 2027.
- Modern Animal clinics show 2x above-industry-average revenue per location and 20%+ EBITDA margins for mature clinics.
The big picture
Chewy’s acquisition of Modern Animal accelerates its shift into a fully integrated pet healthcare ecosystem, combining care, commerce, and services. The deal positions Chewy to capitalize on the growing veterinary services market, leveraging its existing customer base and subscription model to drive further growth.
What we're watching
- Integration Synergies
- How Chewy will leverage Modern Animal’s technology to boost appointment case mix and premium ARPUs across its Vet Care network.
- Customer Retention
- Whether the acquisition can drive higher long-term customer value through increased engagement and cross-category purchasing.
- Market Positioning
- The pace at which Chewy can solidify its competitive moat in the $40B veterinary services market.
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