Finnish e-commerce company Verkkokauppa.com has announced its first acquisition with the purchase of online retail store E-ville.
Based in Finland, e-ville serves customers in Finland and the Nordic countries.
The platform offers a selection of mobile phones, bicycles, leisure equipment, electronics and other home products.
The deal is valued at around €5.3m ($6.05m), which will be paid in a combination of cash and new shares to be issued to e-ville.
Both companies have also agreed to additional purchase price instalments of up to around €6.7m, which could take the deal’s total value to €12.0m.
The acquisition is in line with Verkkokauppa.com’s strategy to expand its own-brand product range.
The company expects to benefit from E-ville’s experienced sourcing organisation, which operates in Shenzhen and Hong Kong, China.
Verkkokauppa.com CEO Panu Porkka said: “The acquisition is the first in the history of Verkkokauppa.com.
“We have had strong organic growth during past years, and this acquisition provides an excellent fit with strategic growth targets.
“E-ville’s consumer, corporate and wholesale business and sourcing service in the Far East will strengthen our key growth areas.
“E-ville’s innovative and efficient corporate culture fits perfectly with Verkkokauppa.com’s culture and the way we work and serve our customers.
“We warmly welcome E-ville’s personnel to the Verkkis community.”
The deal is expected to complete in April and e-ville.com will be integrated into Verkkokauppa.com’s figures from the second quarter of this year.
Verkkokauppa.com said it expects E-ville to have a positive impact of between €5m to €8m on its revenue this year.
Following the transaction, E-ville’s online store will continue to operate and serve its customers as normal.
E-ville employs around 40 people across Finland, China and Thailand, who will continue to work for the company following the transaction.
The company also has a warehousing and maintenance team based in Mäntsälä.