Shoply Limited (ASX:SHP) is expanding its online shopping portfolio through the acquisition of the key assets of Your Home Depot.
The company, which has online shopping and online advertising business, has entered into a heads of agreement with You Home Depot and will pay an all-cash consideration of $2.85 million to acquire YHD's assets including its domain name and other website assets; a database of about 130,000 retail and commercial clients; stock on hand valued at $1.5 million and a leasehold warehouse facility near Sydney.
The transaction is subject to a number of conditions including negotiating a definitive assets purchase agreement; Shoply completing a successful capital raising to fund the transaction and the deal going through by 11 April 2014.
The acquisition comes on heels of the company's recent expansion into two new online retail platforms through the acquisition of domain names including ToyStore.com.au, SportingGoods.com.au and HomeAppliances.com.au. for a cash consideration of $20,000.
The YHD is one of Australia's leading online home-wares and home appliances retailers generating about $12.9 million revenue in fiscal 2013 with an EBITDA of $1 million.
The acquisition will enable Shoply to add to its 60,000 subscriber base with cross-selling opportunities. It will also allow for faster fulfillment of shopping orders in NSW through the acquisition of YHD's warehousing facility.
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