Shoply Limited (ASX: SHP) has acquired the assets of WowBaby.com.au, an online baby products retailer.
The WowBaby acquisition marks the entry into a third online retail category, following Homewares and Domestic Appliances, and Computers and Electronic Goods retail propositions.
According to IBISWorld, the Online Baby Products market is worth $315 million with a strong annual growth rate of 22% over the 2008 to 2013 period.
The WowBaby assets include the brand, software platform and code, selected third party relationships and contracts, and a small customer database.
Consideration for the acquisition is confidential, however Shoply has stated it is not substantial and represents less than 5% of its equity interests.
The purchase will have minimal cost impact due to Shoply's scalable online shopping platform that has the capability to add newly launched or acquired businesses quickly and cost effectively.
As reported in February, Shoply acquired the domain name www.toystore.com.au, and will use this online store when launched later in 2014 to increase its online recreational goods presence.
The supplier relationships gained via the WowBaby acquisition will form a key component of this strategy.
Shoply continues to assess a number of acquisition opportunities as it seeks to further expand its reach across a number of online shopping categories.
The company is capitalised at around $9 million.
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