The online deals market in Australia, which includes Scoopon, DEALS.com.au and Catch.com.au, has just consolidated.
Catch Group and Lux Group, the companies behind some of the big names in Australian online retailing, have closed a series of deals to create pure-play travel, shopping and local ecommerce businesses with a combined turnover of $600 million.
In a series of transactions, the Lux Group, which owns Luxury Escapes, gets Catch Group’s luxury travel businesses, including BonVoyage and Scoopon Travel.
In return, Catch Group’s gets Lux Group’s designer brand businesses, including Brands Exclusive and TheHome, to sit alongside existing product platforms Catch.com.au, GroceryRun and Mumgo.
In a third arm to the deals, Lux and Catch have formed a a 50/50 local joint venture, to include businesses such as Scoopon, Cudo, LivingSocial, DEALS.com.au and New Zealand-based TreatMe.
Both Lux Group and Catch Group will provide exclusive product and travel to the local experience joint venture.
Catch Group founders, Gabby and Hezi Leibovich, will become 20% shareholders in the Lux Group, which was founded by Adam Schwab and Jeremy Same.
Lux Group Managing Director Adam Schwab says: “This transformative transaction will allow Lux Group to establish a focused and scaled Travel ecommerce business with over $300 million of pro forma turnover as we continue to deliver the world’s very best travel packages to consumers across Australia, New Zealand and South East Asia.”
Catch Group co-founder Gabby Leibovich says: “This deal makes a lot of sense for the Catch Group. Our strength is in sourcing products and we have mastered the logistics of ecommerce. We are excited to be able to offer our products and expertise to over a million new customers of BrandsExclusive, TheHome, Cudo and LivingSocial.”
The combined travel brands are expected to have turnover of $110 million this year.
Lux was advised by Macquarie Capital and Clarendons Lawyers. Catch Group was advised by Intrinsic Partners as financial adviser and SBA law as legal adviser.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.