Mnemon Limited has announced an exciting expansion with the acquisition of online retailer TopBuy Australia. TopBuy will become a subsidiary of Mnemon’s DealsDirect Group, which includes Australia’s largest discount online department store, DealsDirect,
The move will see the addition of 200,000 active customers, greater efficiencies and scale between DealsDirect and TopBuy, with the synergies expected to deliver even better value, customer service and product range. In addition, TopBuy’s ability to ship directly from China to the customer’s door adds another level of convenience.
It’s the first acquisition for Mnemon since the reverse listing of DealsDirect in January this year.
TopBuy, which has annualised revenues of around $10m, was launched in 2007 with key strengths in branded consumer electronics, fashion and general merchandise. TopBuy co-founders Peter Xie and Michael Xie have created a robust sourcing infrastructure and will continue in key roles within senior management of TopBuy.
The acquisition of TopBuy is also expected to bring substantial cross-selling opportunities with Deals Direct and an inventory-light model aligned to the company’s strategic direction.
Mnemon interim CEO Michael Rosenbaum said: “This is just the first step in our ongoing acquisition strategy and we are continuing to look at a range of opportunities in the e-commerce industry.”
The total consideration for TopBuy is $2.25m and will be settled by way of $0.325m cash with the balance to be settled in Mnemon shares at a share price of the 60-day VWAP. There’s also a small earn out component.
Based in Sydney, DealsDirect is Australia’s original and most successful discount online department store, delivering more than four million items across the country since launching in 2004. A focus on customer service and everyday value across the entire range in 20 categories has seen the online store grow to offer 10,000 products from electronics and appliances, to furniture, homewares, rugs, pet accessories, garden supplies and more. www.dealsdirect.com.au
For further information: Andrea Kerekes, Access PR. T: 0418 427 412/02 92927002. E: [email protected]