eBay (Nasdaq:EBAY) said Monday it has agreed to acquire brands4friends, Germany's largest online fashion shopping club, in a deal valued at approximately US$200 million.
The move is designed to strengthen eBay's position in the online fashion forum in Europe. The online giant already generates more than $5.4 billion in clothing, shoes and accessories merchandise volume annually.
Berlin-based brands4friends sells goods from renowned fashion and lifestyle brands at reduced prices to members through limited special offers on a daily basis. Founded in 2007, the company has approximately 3.5 million members in Germany, and has held campaigns with more than 600 brands, including Buffalo, Calvin Klein and Diesel.
As part of the deal, eBay will assume brands4friends' interests in U.K. shopping club SecretSales.com and in Japan, brands4friends.jp.
According to eBay's research, online shopping clubs now account for approximately 20% of online fashion sales in Europe.
In the last 18 months, eBay has invested heavily in its fashion business, opening the eBay Outlet in the U.K. and Germany. The company has also partnered with brands for flash sales and Daily Deals at discounts for customers, and launched a global Fashion iPhone application that allows consumers to buy fashion items through their mobile devices.
The acquisition, which is subject to regulatory approval, is expected to close in the first quarter of 2011.
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