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November 9, 2018updated 22 Nov 2018 10:57am

LightInTheBox to buy online retail platform Ezbuy for $85.55m

Global online retail company LightInTheBox Holding has signed a share purchase agreement to acquire 100% equity stake in Singapore-based cross-border e-commerce platform Ezbuy Holding for $85.55m.

Global online retail company LightInTheBox Holding has signed a share purchase agreement to acquire 100% equity stake in Singapore-based cross-border e-commerce platform Ezbuy Holding for $85.55m.

The strategic transaction is aimed at creating greater synergies with the company’s existing business.

The purchase price of the transaction includes non-interest bearing one-year convertible promissory notes that will convert into an aggregate of 22,220,779 American depositary shares (ADS).

Established in 2010, Ezbuy currently operates cross-border e-commerce platforms serving more than three million customers in Singapore, Malaysia, Indonesia, Thailand and Pakistan.

The company offers a range of products from Mainland China, Taiwan, the US, South Korea, Malaysia, and Singapore.

As part of the deal, both companies will work collaboratively to maximise business synergies, which allows them to expand their businesses by capitalising on the opportunities.

LightInTheBox CEO Zhiping Qi said: “After extensive discussions with Ezbuy’s highly experienced management team, I am pleased to finally sign definitive documentation for this acquisition and begin working closely with them to jointly realise major strategic business synergies.

“This transaction is part of our larger plan to build our B2C cross-border e-commerce out to scale globally by enhancing the user experience and improving supply chain management and fulfilment capabilities.”

“This transaction is part of our larger plan to build our B2C cross-border e-commerce out to scale globally by enhancing the user experience and improving supply chain management and fulfilment capabilities.

“Integrating our supply chain network, warehousing and logistics in China will create enormous business synergies that will truly unlock the value of the markets Ezbuy operates in and will help us build a solid platform for sustainable long-term growth.”

The transaction is currently subject to several customary closing conditions, including NYSE approval for the listing of the ADSs.

Furthermore, LightInTheBox will also appoint two new directors to its board as well as a new CEO as part of the transaction.

LightInTheBox offers a range of products through its platforms and other websites and mobile applications.