The companies combined are expected to generate over $10 billion in revenue.

The owner of home shopping network QVC, Liberty Interactive Corp announced on Monday that it is acquiring five-year-old Internet retailer Zulily Inc. for $2.4 billion in cash and stock.

Liberty Interactive said it will pay the equivalent of $18.75 per Zulily share, currently a 49% premium to Zulily’s stock price of $12.57 on Friday.

Seattle-based Zulily specializes in flash sales which last for a limited time period. The company has expanded rapidly within the past five years allowing it to hit $1 billion in net sales in 2014. Growth of the company has slowed this year highlighting that its unusual business model of long delivery times and a no-returns policy may be limiting further potential and has dampened investor sentiment.

Zulily has recently had problems retaining shoppers which have used its site. To improve the rate of returning customers Zulily added more products to its site to change however CEO Darrell Cavens said that the company may have gone too in regards to product expansion as customers started to complain that they could no longer search through the site as quickly as usual.

QVC is most commonly known for selling merchandise through it’s TV channel whilst also having an e-commerce site. The companies said that combined they will have revenue of over $10 billion. Cavens has previously compared Zulily to the web’s version of QVC, saying the two companies share similar sales strategies and the demographic of mostly women.

Zulily went public in November 2013 launching at $22 a share. Within just months of its IPO shares rose above $70 as the company reported impressive growth. As growth has slowed in recent quarters Zulily’s shares have fallen 46% year to date.