TopBuy will now become a subsidiary of Mnemon’s DealsDirect Group, which includes Australia’s largest discount online department store, DealsDirect.
The total consideration for TopBuy is $2.25m and will be settled by way of $325,000 cash, with the balance to be settled in Mnemon shares at a share price of the 60-day VWAP. There s also a small earn out component.
It’s the first acquisition for Mnemon since the reverse listing of DealsDirect in January this year.
TopBuy, which has annualised revenues of around $10m, was launched in 2007 with key strengths in branded consumer electronics, fashion, and general merchandise.
TopBuy co-founders Peter Xie and Michael Xie will continue in key roles within senior management of TopBuy.
The acquisition is also expected to bring substantial cross-selling opportunities with Deals Direct and an inventory-light model aligned to the company’s strategic direction.
“This is just the first step in our ongoing acquisition strategy and we are continuing to look at a range of opportunities in the e-
commerce industry,” Mnemon interim CEO Michael Rosenbaum, said.