Finance Woolworths to buy MyDeal for $243 million
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Woolworths to buy MyDeal for $243 million

Woolworths
Woolworths says the acquisition of MyDeal will beef up its marketplace capabilities in bulky goods. Photo: AAP
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Woolworths has agreed to acquire ASX-listed online marketplace MyDeal.com.au for $243 million.

The supermarket giant is proposing to pay $1.05 per MyDeal share, a 62.8 per cent premium on its Thursday closing price.

Woolworths said the 11-year-old MyDeal would enhance its marketplace capabilities, particularly in furniture, homewares and other bulky goods.

“The addition of MyDeal to Woolworths Group represents a further step towards delivering a more holistic customer experience in food and everyday needs and materially expands our marketplace capability, especially in general merchandise,” Woolworths Group chief executive Brad Banducci said.

MyDeal currently hosts 1900 sellers offering more than six million products, generating $260 million in sales in the 12 months to March 31. It has more than a million active customers.

MyDeal founder and chief executive Sean Senvirtne will retain a 20 per cent interest in MyDeal and continue to lead the company.

The plan is to submit the transaction for MyDeal shareholder approval in the third quarter of this year.

It will also require approval from the Australian Competition and Consumer Commission.

At 1139 AEDT, MyDeal shares were up 55.4 per cent to a one-year high of $1.0025. Woolworths shares were up 1.3 per cent to $35.63.

MyDeal listed on the ASX in October 2020 following an IPO that raised $40 million at $1 per share, but has traded below that level since March 2021.

– AAP