Utinet.ru, e96.ru and Sotmarket, three major Russian e-commerce companies, announced yesterday the completion of their merger process – started last year – into an integrated company, christened “Platform Utinet.Ru.” Part of the company’s stock is being floated on the Moscow exchange following Utinet’s IPO in 2011.
The merger went through the acquisition of 100% shares of e96.ru by Platform Utinet.Ru, while Sotmarket.ru transferred all its non-material assets into the new consolidated company. In return, the founders of the merged Internet retail platforms received shares from existing majority shareholders of Platform Utinet.Ru.
“I am convinced that the union under one umbrella company will have a positive impact on its capitalization and boost its investment attractiveness,” stated Vadim Arsenyev, CEO of the management company Sferiq (this diversified investment company owns a stake in Platform Utinet.Ru via the IQ One Holding).
“We are aiming to create a leader in online commerce that has significant potential for further growth in market share,” he added.
“The company has a wide range of crossover products, which offers great potential for synergies. The overall management structure will use the best practices of each company, including in the areas of marketing, storage, IT solutions, logistics and other functional blocks,” believes founder of e96.ru Boris Lepinskikh.
e96.ru is a Ekaterinburg-basd online retailer of consumer electronics and home appliances with an assortment that exceeds 400,000 items. Launched in 2006, the company emerged recently as a major player in several regions. The site claims that it generated 4.6 billion rubles (approximately $144 million) in net sales, including VAT, last year.
Launched in 2005, the Sotmarket.ru online store specializes in small-sized home electronics and accessories. The site displays more than 100,000 different items in 80 categories. Its net sales were estimated at 4.2 billion rubles (approximately $132 million) in 2013.
Founded in Moscow in 2004, consumer electronics online retailer Utinet.ru was the first Russian e-commerce company to go public in 2011. Utinet’s 2013 net sales were estimated at 2.7 billion rubles (approximately $85 million).
Last year, the group’s sales reached 10.2 billion rubles (approximately $322 million), including VAT, making it Russian’s eighth largest e-commerce group, according to a recent ranking by Data Insight, East-West Digital News and Enter Vision.
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