Ipsy Buys Makeup Box Rival BoxyCharm in $500 Million Deal (1)

Two of the top beauty products subscription services are merging.

Ipsy has agreed to buy Miami-based rival BoxyCharm Inc., a pairing that will create a combined business with more than 4.3 million subscribers and $1 billion in revenue this year, according to the company.

Ipsy and BoxyCharm will operate as separate brands in a merged company called BFA Industries, short for “Beauty For All.” Terms of the deal weren’t disclosed.

The deal values BoxyCharm, which is backed by private investment firm KarpReilly LLC, at around $500 million paid for in mostly stock, people familiar with the matter said.

The ...