Online luxury retailer Net-a-Porter confirmed Tuesday that is merging with Italian e-commerce company Yoox Group to form the Yoox Net-a-Porter Group, an independent global online luxury retailer with a combined 2014 net revenues of $1.4 billion. By joining forces, the group is on track to significantly expand its geographical footprints and serve more than two million high-spending consumers.
The Wall Street Journal reported Yoox Net-a-Porter will be valued at about $2.82 billion when the deal is approved at a Yoox shareholders meeting in June.
Under the agreement reached between Yoox Group and Compagnie Financière Richemont SA (Richemont), which is the controlling shareholder of Net-a-Porter, Richemont will receive 50 percent of the combined entity’s share capital, while Yoox’s current shareholders will own the remaining share capital. Richemont’s voting rights will be limited to 25 percent and its board representation will be limited to two directors out of a minimum of two, in order to preserve the independence of the combined group.
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Yoox founder and CEO Federico Marchetti will be the CEO of Yoox Net-a-Porter Group. Net-a-Porter founder Natalie Massenet will serve as executive chairman of Yoox Net-a-Porter Group.
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“This is a game-changing merger between two pioneering companies that have already radically transformed the marketplace since 2000 and will now shift the industry paradigm once again,” Marchetti said. “Together, we plan to expand on our many combined successes and industry breadth to strengthen partnerships with the world’s leading luxury brands and harness a significant untapped growth potential.”
Massenet described the merger as creating “the world’s biggest luxury fashion store.” She added, “It is a store that never closes, a store without geographical borders, a store that connects with, inspires, serves and offers millions of style-conscious global consumers access to the finest designer labels in fashion. A store that provides established and emerging brands with the greatest interactive shop window to the world. Together, with our world-class teams in technology, logistics, content and commerce we are redefining the fashion media and retail landscape. The best way to predict the future of fashion is to create it.”