• Sat. Dec 10th ,2022

Verkkokauppa.com takes over e-ville.com’s online store for $6 million

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By   Sumit Horo

Date: Feb 11, 2022
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Finish online retailer Verkkokauppa.com Oyj, has reportedly agreed to the acquisition of e-ville.com online store, a China-based online retailer headquartered in Finland.

The transaction, expected to close around the beginning of April this year, amounts to around €5.3 million ($6 million), out of which €3.3 million will be paid in cash while the remaining amount will be issued in a directed share issue to e-ville.com as new shares.

Both parties have also agreed upon additional purchase price installments, of up to €6.7 million ($7.6 million), payable only if the combined sales of their own brand products surpass the set targets of 2022, 2023, and/or 2024.

The takeover will further strengthen and expand Verkkokauppa.com’s assortment in its brands and will also get e-ville’s experienced sourcing organization that operates in Hong Kong and Shenzhen.

E-ville, founded in 2007, is an online store that serves customers in Nordic countries, including Finland, with a maintenance and warehousing team in Mäntsälä, Finland. The company has a local purchasing organization with an effective sourcing process through which the sustainability of the sourcing channel can be controlled.

It offers a range that includes electronics, bicycles, mobile phones, home products, and leisure equipment, with employees in Thailand, Finland, and China.

Panu Porkka, Verkkokauppa.com CEO, stated that the acquisition is a first for the firm and provides an excellent fit to its growth targets and that e-ville’s consumer, wholesale, and corporate business, along with its sourcing service in the Fast East, will strengthen the growth in Verkkokauppa.com’s major areas.

Porkka added that e-ville’s corporate culture fits perfectly with the firm’s culture and in the way it works and serves its customers.

The online store of e-ville.com will continue its operations and serve its customers as it did before.

After the transaction is completed, e-ville’s business operations will be merged with Verkkokauppa.com’s from the second quarter of this year, and is expected to have a positive impact on the latter’s 2022 revenue to the tune of €5 million ($5.7 million) to €8 million ($9.1 million).

Source credit: https://www.globenewswire.com/news-release/2022/02/09/2382194/0/en/Verkkokauppa-com-acquires-e-ville-com-online-store-to-strengthen-own-brand-offering.html

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Sumit Horo

Armed with a graduate degree in Visual Communication, Sumit started his career as social media marketing intern along with some freelancing jobs, and then finally decided to take writing seriously. He currently writes articles for littlesaigoncollective.com. When not writing, he can be found sketching or shopping for books.

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