Pure play online retailer Shoply is merging with the IT accessories and business tech group Anyware Corporation and Harris Technology.
Shoply, whose sites include eStore, Your Home Depot, Eljo, Ezy Direct, OHKI, Wow Baby and Toy Store, this week posted a loss of $1.69 million for the six months to December, reflecting what the company says is the competitive nature of online shopping.
The merger will bring economies of scale and complementary growth opportunities for Shoply and Anyware, the owner of the long-established e-commerce business Harris Technology.
The deal includes Anyware initially taking a 19.99% stake in Shoply for $1 million. After due diligence, Shoply will take 100% ownership of Anywhere by issuing shares.
Anyware, co-founded by managing director Garrison Huang in 1997 and headquartered in South Dandenong, Victoria, bought the Harris Technology business from Officeworks in 2014.
The Anyware/Harris Technology group is expected to deliver to Shoply revenue of $50 million and EBITDA (Earnings before Interest, Depreciation, and Amortisation) of $2 million in the 2016 financial year.
Shoply says the merger will enhance the scale of its distribution platform for business technology equipment and generally strengthen its competitive position in the online retail industry.
Garrison Huang of Anyware is to join the board of Shoply.
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