Online retailer TopBuy Australia has been acquired for $2.25 million - the first in what could be a spate of etail acquisitions.
This is the first acquisition for Mnemon Limited, parent company of DealsDirect Group, since the reverse listing of Deals Direct in January this year.
Mnemon interim CEO Michael Rosenbaum said more acquisitions are on the horizon.
“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 $325,000 cash, with the balance to be settled in Mnemon shares at a share price of the 60-day VWAP.
There is also a small earn out component.
TopBuy, which has annual revenue of around $10m, was launched in 2007.
It specialises in branded consumer electronics, fashion, and general merchandise.
TopBuy co-founders Peter Xie and Michael Xie will continue in key roles within senior management of TopBuy.
The acquisition is also expected to bring substantial cross-selling opportunities with Deals Direct.
It will also allow for an inventory-light model aligned to the company’s strategic direction.