TEL AVIV, Israel, May 3, 2016 /PRNewswire/ --
Azrieli Group (TASE: AZRG.TA) today announced its entry into the eCommerce sector with the acquisition of the eCommerce business of Buy2 (TASE: BUY2.TA). The acquisition, which was consummated after the group examined, over the last year, the future trends in this sector, is a strategic move whose purpose is to build a new growth engine in the digital sector in Israel.
Buy2 is one of the leading and most technologically advanced eCommerce platforms in Israel, whose founder and controlling shareholder is Aviv Refuah.
In consideration for the acquisition, Azrieli Group shall pay consideration of approx. NIS 65 million. In addition, the Group shall pay for management services that shall be provided thereto by Buy2 Networks, for two years, approx. NIS 5 million per year.
Timor Gordon, Head of New Commerce at Azrieli Group: "The eCommerce arena at Azrieli Group is a new growth engine. Buy2 is a company with innovative technology, excellent commerce business and talented workers, and we deem it as a strong basis for the development of Azrieli Group's digital commerce business. We intend to harness the most innovative technology for the benefit of the Israeli consumer, facilitating an enjoyable, convenient, accessible and smart shopping experience".
Aviv Refuah, founder of Buy2, who will continue to act as CEO of the acquired company: "We are delighted that Azrieli Group has chosen Buy2 as the growth engine for its eCommerce business, expressing faith in our technology, platform and human capital. The eCommerce arena is rapidly developing in both Israel and worldwide, and the sector's potential is considerable. We believe that the connection with the group will boost Buy2's business in all channels to create a unique service and shopping experience in the Israeli market, which experience will first and foremost serve the Israeli consumer".
The Company, founded and managed by Aviv Refuah, is traded on the Tel Aviv Stock Exchange under the symbol "Buy2 Networks".
Buy2, which employs around 60 workers, includes a broad range of sites and services, such as: home and garden products, electrical products and electronics, fashion and beauty, pharmaceutical products, parent and child products, sport and camping products, etc.
The company's eCommerce platform includes more than 20 thousand different products which are available for online purchase.
Buy2 also provides solutions for suppliers and sellers interested in selling on the group's sites, from marketing the products to the public, clearing services and customer service, to logistics services which include storage of the products and management of their distribution to the customer's home within a short time (generally within 24-48 hours).
Upon the closing of the acquisition, Azrieli Group is expected to expand its presence in the digital sphere by increasing its technological know-how and capabilities while expanding its supply of services and products with the aim of offering Israeli consumers the best value proposition, based on an intuitive, accessible and smart online shopping experience.
For Further Information:
Head of Investor Relations, Azrieli Group
SOURCE Azrieli Group