MYSL.L Regulatory News (MYSL)

MySale Group plc

Acquisition of Online Retail Business

MySale Group plc (AIM:MYSL), is pleased to announce that is has entered into a binding agreement to acquire the trade and assets of three online consumer retail businesses from Grays eCommerce Group Limited (the ''Vendor'') in Australia (the ''Online Retail Business'').

The acquisition includes the domain names 'OO.com.au'; 'dealsdirect.com.au'; and 'topbuy.com.au' and all associated customer databases, intellectual property, trademarks and goodwill.

The Online Retail Business has a number of features which are attractive to MySale; three websites with c 3.1 million average monthly visits; an e-mail database of 6.5 million customers; and 512,000 unique active customers (of which only 50,000 overlap with MySale's existing active customer base, in the ANZ region, of 682,000).

The strategic rationale for the acquisition is that it substantially increases the Group's potential active customer base.

MySale expects to exchange contracts with the Vendor on or around the 30th November 2015, following approval of the transaction by the Vendor's shareholders, and complete the acquisition on the 31 January 2016. 

The Consideration payable for the Online Retail Business is A$5.2 million of which A$3.0m is payable on exchange of contracts and the balance is payable on completion. The Consideration will be funded from the existing cash resources of the Group.

Carl Jackson, Chief Executive of MySale Group commented:

'' This is a great opportunity to substantially grow our active unique customer base in Australia and fits with our strategy of widening our online proposition to leverage our existing assets.

 'The sites being acquired are all well-recognised brands in their own right, with a female weighted customer base. There is very little overlap with our existing member base so there is also a good opportunity to cross sell our core fashion offering. ''

*ANZ is defined as Australia and New Zealand

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About MySale Group

MySale is a leading international online retailer with established flash sales websites in Australia and New Zealand (ANZ), South-East Asia (SEA) and the United Kingdom, with over 800,000 active members. Founded in 2007, the Group provides members with access to outstanding products at exceptional value whilst providing a unique route for brand partners to manage excess inventory from the Southern Hemisphere. The websites host time limited flash sales in each of its three territories across ladieswear, menswear, childrenswear, health, beauty and homewares.

The Group's online sales are supported by an international network of supply chain infrastructure and technology that enables MySale to source products from around the world for sale and delivery to members.

As a result of this exceptional inventory management solution, MySale has built a unique international brand portfolio and sourcing capability and is able to source product from over 3,000 brand partners.