Ecommerce giant Amazon.com has long been rumored to make a $2 billion play for online private sales club sensation Vente-Privée, but so far a deal hasn’t happened. Now rumors are swirling that Amazon is in late-stage negotiations to acquire Spain-based rival BuyVip instead.
Company executives have denied the rumors so far, but Spanish business publication CincoDías cites multiple sources familiar with the talks having confirmed the acquisition to them. Paperwork is being signed today, according to said sources.
The deal would be valued at roughly €80 million (roughly $110 million) and involves an outright acquisition of the whole company. That would be exactly the same amount Amazon spent on daily deal site Woot earlier this year.
Update: we’re hearing from other sources that price could be lower, in the range of €70 million (approximately $96.5 million).
Founded in 2006, BuyVIP operates a private buying club, where shoppers joint to receive word on short-duration sales on items discounted by 30%-70% that are end-of-line or not available through retail outlets. The Madrid-based company operates in Spain, Italy, Germany, Austria, Portugal, Poland and The Netherlands and claims a user base of around 6 million members.
The company booked a turnover of €70 million in 2009.
BuyVip hasn’t disclosed how much funding it has raised in total, but its most recent round, the company’s third, came in at $20 million. Investors are Kennet Partners, Active Capital Partners, Bertelsmann Digital Media Investments and 3i Group.
More as the story develops.
(Hat tip to Jose A. del Moral)