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Vente-Privee buys Privalia for 500 million Euro

Update On :18 April 2016

Vente-Privee buys Privalia for 500 million Euro

Barcelona has just clocked up its biggest ever exit. The price-tag on the sale of veteran Spanish ecommerce player Privalia, headquartered in the city, to France's Ventee-Privee has not been officially disclosed but recent rumors swirling about a possible exit for Privalia pegged the price being discussed at up to 500 million Euro (~$560M).

Privalia said the sale to the French ecommerce deals site will help the latter strengthen its position in an increasingly competitive European retail landscape.

Privalia is one of the largest flash-sales companies and number one leader in Italy, Spain, Brazil and Mexico. The co-founders Lucas, Jose and their team in Barcelona have built a multi-hundred-million euro business that has attracted more than 28 million customers. Now with vente-privee.com, they will have more than 60 million registered users across Europe and South America. Other investors in the ecommerce business include Cabiedes & Partners, General Atlantic, Highland Capital Partners, Insight Venture Partners, Nauta Capital and Sofina.

Privalia co-founders Lucas Carne and Jose Manuel Villanueva, added: €œWe are excited to join the creator of the online flash sales concept. This alliance will enable us to accelerate our growth and expand our offerings to new sectors, which our members will benefit from.

Following the acquisition, Privalia will continue to be run as a separate brand, with Ventee-Privee'€™s primary driver here being the quest to claw out more growth in the European market via consolidation talking up the benefits of sharing retail expertise/innovation in a regional retail landscape it couches as both fragmented and mature. So, in other words, fashion ecommerce growth in Europe demands nurturing local brands; rather than being one-size fits all.

€œThis new expansion reflects our continued active approach to the European deployment, which began in 2015 with a majority stake in the Belgian company vente-exclusive,” noted Jacques-Antoine Granjon, CEO and founder of vente-privee, in a statement, flagging up Privalia’s success in “two of our key markets€ (Spain and Italy).

It'€™s not the only spot of shopping Ventee-Privee is indulging in. Also confirmed it has acquired a majority stake in Swiss retail site, eboutic, which was founded back in 2007 with the aim there being to inject cash into that domestic ecommerce business to push to accelerate growth.

News Source From : http://techcrunch.com/2016/04/14/vente-privee-buys-spanish-fashion-ecommerce-site-privalia/

Image Courtesy : http://www.cpp-luxury.com/wp-content/uploads/2016/04/Vente-Privee-Privalia-568x306.jpg

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