The two firms will become independent publicly traded companies in 2015. The move follows pressure from investor Carl Icahn to spin off the payments ...
The acquisition comes less than a month after Fab.com announced major layoffs.
Fab.com, No. 183 in the 2014 Internet Retailer Top 500 Guide, has bought One Nordic Furniture Co., a Scandinavian seller of high-end designer shelves, tables, lighting, chairs and similar products.
Fab.com did not say how much it paid for the firm, which has its main office in Helsinki, except that the cash and stock transaction is “valued in the tens of millions of dollars.” One Nordic employees will own 5% of the combined company.
“Long a darling of the Nordic design community, One Nordic brings expertise in innovative furniture design and manufacturing and a track record in online furniture sales,” Fab.com says in a statement. On its web site, One Nordic says it plans this year to open showrooms for products in places such as cafes, restaurants and hotels.
Fab.com launched in mid-2011 as a flash-sale retailer of design-inspired products and has since moved away from limited-time sales of select items to a more traditional e-retail model, stocking larger quantities of products that it sells for longer periods.
Fab.com’s acquisition follows its announcement in May that that it would lay off 80-90 workers at its New York City location. That represents one-third of the e-retailer’s global team, and comes after previous Fab.com job cuts.
According to Top500Guide.com, Fab.com had estimated 2013 web sales of $140 million. The company experienced 21.74% growth from 2012 to 2013—nothing like its growth rate a year earlier of 653.80%.