Woolworths to acquire 80% stake in Australian online marketplace MyDeal
Woolworths Group has offered to acquire a stake of around 80% in MyDeal.com.au (MyDeal), an Australian online marketplace, in a deal that values 100% of the latter at A$243 million.
In this regard, the Australian supermarket company has signed a scheme implementation agreement (SIA) with MyDeal.
Shareholders of the ASX-listed online marketplace are being offered A$1.05 per share in cash by Woolworths Group.
The proposed deal will take MyDeal private with the remaining 20% stake in it to be retained by Sean Senvirtne, its founder and CEO, along with some other important management shareholders.
Founded in 2011, MyDeal hosts nearly 1,900 sellers on its online marketplace where they offer over six million product SKUs with a focus on homewares, furniture, and everyday needs.
MyDeal is expected to boost the marketplace capabilities of Woolworths Group, especially in homewares, furniture, and other bulky goods. It will also complement the existing general merchandise offer of BIG W, an Australian discount department store chain owned by Woolworths Group.
Brad Banducci — Woolworths Group CEO said: “The addition of MyDeal to Woolworths Group represents a further step towards delivering a more holistic customer experience in food and everyday needs and materially expands our marketplace capabilities, especially in general merchandise.”
For MyDeal, the deal allows it to gain access to Woolworths Group’s platforms and capabilities which are likely to support its continued growth.
Sean Senvirtne — MyDeal Founder and CEO said: “The MyDeal team is excited by the opportunity to partner with Woolworths Group. It will help support the growth of our retail platform by accessing Woolworths Group’s capabilities across eCommerce, supply chain, retail, loyalty and more.”