Yoox and Net-a-Porter announced an all-share merger on Tuesday. Combined, the e-commerce fashion retailers were worth $1.4 billion in 2014, reported the New York Times. The new company will be called Yoox Net-a-Porter group.
The deal comes more than a year after Yoox began looking for a purchase, and the day after the announcement, the companies both admitted to considering a potential business agreement. Last week there was even speculation that Amazon was interested in scooping up Net-a Porter.
Net-a-Porter sells clothing, jewelry, shoes and other accessories by designer labels, in addition to publishing Porter, a magazine that showcases featured items to readers. The retailer was a pioneer in the renaissance of the content-commerce model, which began sometime in 2011.
Yoox sells off-season luxury goods and trendier brands on TheCorner.com.
Yoox is excited to welcome Net-a-Porter's editorial skills to the fold as it looks to woo millennials on social media—considering smarphones make up 50 percent of the traffic on Yoox's websites.
Founder and CEO of Yoox, Federico Marchetti, will continue to act as CEO of the combined companies, and Net-a-Porter's founder, Natalie Massenet, will act as its executive chairwoman. The websites will remain separate from Net-a-Porter's headquarters in London.
"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."
-See this Yoox Group press release
-See this New York Times article
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