eBay has agreed to buy German fashion site Brands4Friends for $200 million.
After the success of its online payment business ‘Paypal’, eBay is now focusing more on growing its Pan American presence in the fashion industry.
According to eBay, online shopping clubs command 20 per cent of online fashion sales in Europe, and Brands4Friends has over 3.5 million members in Germany alone and more across Europe.
The acquisition is expected to close in the first quarter of 2011.
As part of the deal, eBay will also get ownership of Brands4Friends equity shares in UK shopping club SecretSales.com and Brands4Friends.jp, the Japanese arm of Brands4Friends.
San Jose-based eBay generates $5.4 billion in clothing, shoes and accessories sales annually, which is about 60 per cent of its total revenue.
Doug McCallum, senior vice president, eBay Europe said in a statement that after the acquisition of Brands4Friends, eBay will enter the online shopping club market with an already established and dynamic partner with the expertise to match the company’s ambition.