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Target deal for Shipt showcases Birmingham’s dynamic tech sector

BIRMINGHAM, Alabama – The vibrant entrepreneurial tech scene in Birmingham is once again in the national spotlight, as Target plans to buy local grocery delivery service Shipt for $550 million in a blockbuster deal.

The retail giant, which announced the acquisition in December, said it will have a major impact on efforts to increase convenience for Target shoppers through affordable, same-day delivery across a variety of product categories.

For Birmingham, the move is the latest win for the city’s burgeoning innovation sector, which has attracted millions of dollars in new investment for tech-based startups.

“Birmingham is a center for innovation and this agreement highlights the type of cutting-edge industry that is emerging here,” said Jon Nugent, vice president for innovation and technology for the Birmingham Business Alliance.

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