Those talks appear to have escalated quickly, as Yoox confirmed this morning that it has clinched a deal with Net-A-Porter to create a “business combination.” The financial aspects of the deal were not made public.
The merger creates a new group to be known as Yoox Net-A-Porter Group with expected revenue of $1.4 billion. Under the deal, the new company is expected to attract nearly two million high-spending customers and over 24 million monthly visitors worldwide.
Both Yoox and Net-a-Porter – which is owned by Swiss company Richemont – launched in 2000 as a way to provide more upscale brands in one place.
However, the two companies took a decidedly different approach to doing so.
London-based Net-a-Porter showcases its products much like one might see while thumbing through a fashion magazine, while Yoox focuses on buying overstocked or unsold items from previous seasons from high-profile fashion designers and then selling those apparel products for a discounted price.
“This is a game-changing merger between two pioneering companies that have already radically transformed the marketplace since 2000 and will now shift the industry paradigm once again,” Federico Marchetti, founder of Italian-based Yoox Group and the new CEO of Yoox Net-a-Porter Group says in a statement. “Together, we plan to expand on our many combined successes and industry breadth to strengthen partnerships with the world’s leading luxury brands and harness a significant untapped growth potential.”
The quick turn around regarding Yoox and Net-a-Porter’s merger are a bit surprising, considering just last week it was reported that Amazon was in talks to purchase Net-a-Porter for a hefty $2 billion. However, officials with Richemont tell Fortune that those talks never occurred.
To Create a Leading Online Luxury Fashion Retailer Worldwide [Yoox]
by Ashlee Kieler via Consumerist
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