LightInTheBox Holding Co., China’s international online retail company, has used US$85 million to wholly acquire the total issued share capital of Singapore’s online shopping portal Ezbuy Holding Co., according to an announcement.
The purchase will be settled in the form of a one-year interest-free convertible promissory note, according to another filing.
Mr. Jian He, the founder of Ezbuy Holding, was appointed as the company’s new chief executive officer and a director on the company’s board of directors. He holds a master’s degree from Fudan University in Electrical Engineering, and bachelor’s degree in Electrical Engineering from Zhejiang University.
In addition, Mr. Meng Lian, partner of IDG Capital, was appointed to serve as a director on the company’s board of directors. Meng mainly focuses investment in Internet and mobile Internet sector.
LightInTheBox Holding Co. is a cross-border online retail marketplace, with presence in 200 countries across the world, said the company.
The company suffers from poor performance in recent years. Its net revenue has decreased 29.4% on a year-over-year basis to US$55.4 million from US$78.5 million in the same quarter of 2017.
The total number of orders for product sales was 0.9 million during the second quarter of 2018, surviving a 47.0% decrease from 1.7 million in the same quarter of 2017. Gross profit for the second quarter of 2018 was US$14.0 million, representing a 49.3% decline, compared with the same period of 2017, according to its Q2 results.
Founded in 2010, Ezbuy is a cross-border e-commerce platform focusing on the Southeast Asia region.