Verkkokauppa.com Oyj PRIVATE INFORMATION February 9, 2022 at 8:30 p.m. EET
VERKKOKAUPPA.COM ACQUIRES THE E-VILLE.COM ONLINE STORE TO STRENGTHEN ITS OWN BRAND OFFER
Verkkokauppa.com Oyj has agreed to acquire online store e-ville.com, which is headquartered in Finland and operates in China. The acquisition supports Verkkokauppa.com’s strategy to strengthen and expand its assortment of own brands. With the acquisition, Verkkokauppa.com will gain the experienced e-city sourcing organization operating in Shenzhen and Hong Kong, China. E-ville’s local purchasing organization and efficient procurement process, established more than 10 years ago, also help to control the sustainability of the supply chain.
E-ville is an online store founded in 2007 serving customers in Finland and the Nordic countries. E-city has a warehousing and maintenance team in Mäntsälä. Its selection includes, for example, mobile phones, bicycles, leisure equipment, electronic devices and other products for the home. E-ville employs around 40 people in Finland, China and Thailand, and they will continue to serve the company.
“The acquisition is the first in the history of Verkkokauppa.com. We have experienced strong organic growth over the past few years, and this acquisition fits perfectly with strategic growth objectives. E-city’s sourcing and sourcing service for consumers, businesses and wholesalers in the Far East will strengthen our key growth areas. E-city’s innovative and efficient corporate culture fits perfectly with the culture of Verkkakauppa.com and the way we work and serve our clients. We warmly welcome e-city staff to the Verkkis community,” says Panu Porkka, CEO of Verkkokauppa.com. The e-ville.com online store will continue to operate and serve its customers as before.
The purchase price amounts to approximately 5.3 million euros, of which 3.3 million euros will be paid in cash and 2.0 million euros in new shares to be issued within the framework of an issuance of shares directed to the seller at closing. The shares will be subject to a lock-up agreement. The parties have also agreed to additional installments of the purchase price of up to approximately €6.7 million payable only if combined sales of own-brand products exceed set target levels in 2022, 2023 and/or 2024. total purchase can amount to 12.0 euros. million at most.
The transaction will be completed in early April 2022 and the acquired business activities will be consolidated in Verkkakauppa.com figures from the beginning of the second quarter of 2022. The E-city operations are expected to have a positive impact of 5 to 8 million euros . on Verkkakauppa.com’s revenues in 2022.
The turnover of the activities acquired during the fiscal year April 2020 – March 2021 amounted to approximately 10 million euros (April 2019 – March 2020: approximately 7 million euros) with a profit margin of 5% (3%). The balance sheet of the companies acquired at the end of March 2021 was around €2 million with equity of around €1 million. No material liabilities will be transferred upon acquisition.
Verkkokauppa.com will publish its statement on the financial statements on Thursday, February 10 at approximately 8:00 a.m. EET. On the same day, the company will hold two press conferences, the first in Finnish at 10:00 a.m. EET and the second in English at 11:00 a.m. EET. During the press conferences, the CEO of Verkkokauppa.com, Panu Porkka, will present the results for the fourth quarter of 2021 as well as comments on the acquisition of e-ville.com. Questions to the CEO can be sent before or during the presentation by email to email@example.com.
Presentation materials for both events are available at https://investors.verkkakauppa.com/en/presentations.
For both press conferences, the Livestream webcast is available at www.verklive.com.
Panu Porkka, CEO
Marja Mäkinen, Head of Investor Relations and Corporate Communications
Phone. +358 40 671 2999
Verkkakauppa.com enables its customers to follow their passion by offering a wide product assortment of approximately 80,000 products. Verkkokauppa.com Oyj serves its individual and business customers through its online store, megastores, 24-hour kiosk and network of collection points, as well as fast deliveries and various services. As Finland’s most popular and most visited national online retailer, its deliveries cover approximately 75% of the Finnish population the next day. The company has four megastores: in Oulu, Pirkkala, Raisio and Helsinki, where it is also headquartered. Verkkokauppa.com employs over 750 people and its shares are listed on the Nasdaq Helsinki Stock Exchange under the symbol VERK.