EBay Acquires Berlin-Based brands4friends for $200 Million
It’s been a busy shopping season for eBay, which has made its third acquisition in as many weeks.
Today, eBay said it has acquired brands4friends, a German online retailer for $200 million in cash. Earlier this month, eBay announced the acquisitions of Milo, which keeps a database of local retailers’ inventory, and Critical Path, a mobile application development shop.
EBay expects brands4friends to strengthen its position as a leading online fashion destination in Europe. Brands4friends claims to be “Germany’s largest online shopping club,” which offers top brands at reduced prices to members through limited daily offers.
Online shopping clubs account for 20 percent of online fashion sales in Europe, according to eBay’s own research.
The 3-year-old company has about 3.5 million members and 200 employees.
As part of the deal, eBay will also assume brands4friends’ equity interests in U.K. shopping club secretsales.com and in Japan’s brands4friends.jp. The acqusition is expected to close in the first quarter, pending regulatory approval.