French ecommerce site Vente-Privee has bought the Barcelona-based online fashion retailer Privalia for €500 million.
The acquisition represents a major step in the rise of Vente-Privee. Recently, the French firm had suffered a setback when its attempt to crack the US market in partnership with American Express fell through at the end of last year, but is bouncing back by concentrating on expanding further into Europe. Other recent acquisitions include Switzerland’s Eboutic and Belgium’s Vente-exclusiv.
A statement from Privalia announcing the takeover read: “Privalia is one of the largest flash-sales companies and number one leader in Italy, Spain, Brazil and Mexico. The co-founders Lucas, Jose and their team in Barcelona have built a multi-hundred-million euro business that has attracted more than 28 million customers.
“Now with vente-privee.com, they will have more than 60 million registered users across Europe and South America. This is a great European and Barcelona story and we’re excited to have been part of it.”
CEO and Founder of Vente-Privee Jacques-Antoine Granjon added: “We observe that the European market is both fragmented and mature enough that ‘virtuous’ reconciliations take place and therefore allows to serve the best experience, tailored to each market.”
Privalia, while its main markets were Spain and Italy, had recently expanded into Brazil and Mexico. It is thought that its addition to the Vente-Privee family of companies will help the group to gain a foothold in Central and South American marketplaces.
Vente-Privee was founded in 2001, and was an early pioneer in creating the online “flash sale” model for eCommerce, with sales of overstocked goods that typically last from three to five days. Privalia was created in 2006 and is the most popular shopping site in Spain and Italy. It offers daily sales of branded goods to its registered users.