Swedish e-commerce marketplace Fyndiq will become a subsidiary of the Nordics regional e-vendor Cdon, following agreement of an stock-and-cash deal worth SEK735 million (€65.6 million) that will see Fyndiq's investors own 40% of the newly-merged entity.
The preliminary acquisition price works out on a per share basis at SEK173.25 (€194.82).
In a somewhat unusual outcome, the head of Fyndiq Fredrik Norberg will become CEO of the combined company. Norberg's track record includes prior founding roles in e-commerce, logistics and transportation.
CDON has been led by an interim CEO, Thomas Pehrsson, since he was promoted in January in response to a pretty dismal set of full-year financial data.
The business reportedly shed SEK150 million (€13.4 million) in 2022, while Fyndiq reported a modest operating profit.
Karl-Johan Persson, chairman of clothing store giant H&M, is one of Fyndiq's main shareholders and will hold 6% of the merged company. Fyndiq's owners Christoffer Norman and Erik Segerborg will join the board of directors.
Deal consideration is basically all shares, with a cash contribution of just SEK 7 million ($600,000). The deal's still subject to shareholder approval; for one, it has to get support from 62.5% of shares and votes at CDON's EGM, due to be held March 28. Both Norman and Segerbord have promised to refrain from any sales of their shareholdings for a 12-month period, presumably to avoid any near-term market jitters.
In a press release issued to Swedish media, Cdon board chairman Josephine Salenstedt said: "This strategic move brings together two companies with complementary consumer offerings, something that increases the focus on efficiency and at the same time provides greater scale and profit potential."