Woolworths has moved to acquire MyDeal.com.au for $243 million.
MyDeal currently sells more than six million products across 1900 sellers, generating $260 million in annual sales.
Woolworths is proposing to pay $1.05 per MyDeal share, a 62.8 per cent premium on its Thursday closing price.
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.
MyDeal Chairman Paul Greenberg said the scheme is an attractive transaction which provides an all-cash option for MyDeal shareholders.
“The MyDeal Board has unanimously concluded that the Scheme represents a compelling outcome for our shareholders, customers, suppliers, and staff. The cash consideration of $1.05 per share represents a highly attractive premium to current trading levels and a premium to the IPO price.
“The price is a very tangible measure of the value and quality of MyDeal’s industry-leading online marketplace platform.
"At a significant premium to the current trading price, Woolworths Group’s offer provides MyDeal shareholders with certainty of value and the opportunity to realise their investment in full for cash.”
MyDeal CEO Sean Senvirtne also said the transaction is a highly attractive proposition for MyDeal shareholders and represents a significant premium to MyDeal’s share price.
“I am excited to retain a significant and continued interest in MyDeal and to lead the business through its next stage of growth to become Australia’s leading marketplace.
“The entire MyDeal team is looking forward to partnering with Woolworths Group, which will deliver a step change in the growth of our retail platform by accessing sector leading capabilities across ecommerce, supply chain, retail, loyalty and more."