Romanian online retailer eMag has announced the merger of its Hungarian subsidiary with Extreme Digital, creating one of the largest online retail networks in Central and Eastern Europe. The deal, which is subject to approval by Hungary’s competition watchdog, paves the way for eMag’s entry into five new regional markets where Extreme Digital is already present: Austria, Croatia, the Czech Republic, Slovakia and Slovenia. Besides Hungary eMag currently operates in Romania, Bulgaria and Poland. The new company is targeting annual sales of one billion euros in the near future.
“This partnership is a recognition of the scalability and quality of the eMag technologies that we have developed over the past 10 years. We are confident that eMag’s development in the region will intensify as a result of this merger, allowing us to expand in countries where Extreme Digital is already active,” said Iulian Stanciu, eMag’s CEO.
Extreme Digital was founded in 2001 by Balázs Várkonyi and Gyula Kelemen, two of the most important technology entrepreneurs in Hungary. Following the merger, eMag will own a 52 per cent stake in the new company, Extreme Digital 48 per cent.
eMag, founded in 2009, is the largest online retailer in Romania, Hungary and Bulgaria. In November 2018 it opened a new 126,000 square metre-warehouse close to the Romanian capital Bucharest, the largest warehouse in Central and Eastern Europe.
—
Photo: eMag official Facebook page.
Add Comment