Two-year-old MTailor has garnered millions in sales for its custom-made shirts, all via its app.
Mnemon Ltd. acquires Gray’s Holdings Pty in a deal that will create a company with annual e-commerce sales of $407.9 million, 48% from business-to-business e-commerce.
The merger of two of Australia’s largest e-commerce companies includes a strong measure of business-to-business e-commerce in the deal.
Mnemon Ltd. announced last week plans to acquire Gray’s Holdings Pty in a deal that, when complete, will create a company with annual e-commerce sales of about $407.9 million ($440 million in Australian currency) and a database of 6.2 customer names. Terms of the all-stock deal weren’t disclosed. Gray’s shareholders collectively will receive 73.3 million shares of Mnemon stock, but neither company disclosed a price per share.
The deal also creates what Mnemon says will be one of Australia’s biggest e-commerce companies, and one that generates a lot of its revenue from online sales to businesses. With projected B2B revenue of $196.5 million, Gray’s operates GraysOnline.com, a business-to-business marketplace that serves manufacturers, banks and finance companies and specializes in the sales of industrial and commercial assets, including equipment. The business-to-consumer side of the merged company has projected revenue of $213.2 million and includes mass merchant sites such as DealsDirect.com and TopBuy.com.
The newly merged company will be known as Gray’s E-Commerce Group and will be headed up by current Gray’s CEO Mark Bayliss. “This transaction makes compelling strategic sense, bringing together two renowned names in the Australian B2B and B2C e-commerce markets,” Bayliss says. “The Australian e-commerce market is evolving rapidly and the scale of Gray’s will be an important factor in leveraging growth across multiple sectors.”As a B2B marketplace Gray’s has more than 80 categories for industrial and commercial products, the company says. Categories include manufacturing and engineering, autos, trucks and marine, mining, construction and agriculture, forklifts and warehousing and pallet racking. The new company sees growth in Australian B2B e-commerce. “Only 10% of Australian manufacturers and wholesale distribution companies have transactional web sites,” Gray’s says. “We have the largest online marketplace in the Asia-Pacific region for used plant locations and equipment.”
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