Net-a-Porter and Yoox Group Team Up to Conquer Fashion IndustryLondon-based online fashion firm, Net-A-Porter, decided to merge with Italian online retailer, Yoox Group, as announced on Tuesday.
After the companies confirmed they were talking on Monday, Net-A-Porter’s Swiss parent company, Richemont, confirmed that it had come up with an agreement with Yoox for a transaction that could create a combined company that is worth more than $2.5 billion under terms and conditions that Yoox’s shares at a June 2015 meeting will rely on.
The deal is expected to be completed by September 2015. The new company has already decided it will be called “Yoox Net-A-Porter Group” and be listed on the Borsa Italiana, where Yoox currently does it’s trades as a public company.
“Established business models are being increasingly disrupted by the technological giants,” Richemont Chairman, Johann Rupert, said. “It is with this in mind that we believe it is important to increase leadership and size to protect the uniqueness of the luxury industry. The merger of the two leaders will further enhance an independent, neutral platform for a sophisticated clientele looking for luxury brands.”
The news follows rumors from last week of an Amazon take over of Net-a-Porter for $2 billion, but Amazon has since dispelled those rumors.
“Today, we open the doors to the world’s biggest luxury fashion store,” said Natalie Massenet, Net-a-Porter founder, in a statement. “It is a store that never closes, a store without geographical borders, a store that connects with, inspires, serves and offers millions of style-conscious global consumers access to the finest designer labels in fashion.”