In a deal thought to be worth $200 million (£129.35 million), internet giant eBay has acquired all of the shares in Germany’s largest online fashion and lifestyle retailer Brands4friends.
Brands4friends has approximately 3.5 million members in Germany, and has featured over 600 different brands in its campaigns including Buffalo, Calvin Klein and Diesel.
The deal was announced today and is likely to be completed in the first quarter of 2011, subject to regulatory approval.
Doug McCallum, Senior Vice President for eBay in Europe, commented: “We want to give our customers the best possible fashion experience online.
“With the acquisition of Brands4Friends, we will enter the online shopping club market with an established and dynamic partner who has the expertise, relationships and passion to match our own ambition.”
Today’s announcement follows eBay’s acquisition last week of mobile application developer Critical Path Software.
Generating more than $5.4 billion in clothing, shoes and accessories merchandise volume annually, eBay hopes this latest acquisition will help it move into the online shopping hub market which accounts for approximately 20 percent of online fashion sales in Europe.
Sergio Dias, CEO of Brands4friends, said: “We are able to bring our retail and brand competence and industry knowledge to eBay, and we can expect to benefit from eBay’s traffic and ecommerce experience to accelerate the growth of our shopping community.”