LeGuide.com SA, a listed publisher of online shopping guides in France, has acquired social shopping guide Dooyoo for an undisclosed amount. DooYoo had raised over $30 million in VC funding from firms like 3i, CNET, Earlybird Venture Capital and Syntek Capital.
LeGuide.com S.A. (Alternext – ALGUI), the leading independent publisher of Internet shopping guides in France and the fifth most popular in Europe*, announces the conclusion of an agreement for the future acquisition of the social shopping guide dooyoo as part of its strategic European development.
The acquisition would not only strengthen the company's geographical presence but also enhance the features of the different websites of LeGuide.com S.A., particularly regarding consumer reviews and user generated content. Moreover, the acquisition is perfectly consistent with its stated goal of becoming number three in Europe within the next two years.
In March 2008, the joint audiences* of the two companies amounted to 8.8 million unique visitors in those markets.
“Not only we would achieve a significant position on the German market, which represents the 2nd largest European eCommerce market, but also this acquisition would enable us to expedite our growth on the highly dynamic UK market. The latter is, this is no secret, a challenging but promising one.”, comments Corinne Lejbowicz, CEO of LeGuide.com S.A.
Beyond that dooyoo would also contribute with its important know-how in matters of consumer reviews: 50, 000 new reviews in Germany and an additional 20, 000 in the United Kingdom are added monthly to their sites. These high-grade review databases were built up over several years of close cooperation with Internet users. User generated content represents a great asset to the quality of a shopping guide and would thus allow LeGuide.com to reinforce the popularity of its various websites.
A complementary and synergistic operation
A plurality of synergies is possible: On the one hand dooyoo would profit from LeGuide.com's corporate skills and technological resources today partly outsourced by the company. As a countermove dooyoo's excellent skills in consumer reviews give a great benefit to LeGuide.com S.A. On a medium-term time scale, financial profit could be gained by synergies such as technical implementations and economies of scale.
* Source : Nielsen/Netratings March 2008, France, Germany, Italy, Spain, Switzerland, United Kingdom
About LeGuide.com S.A. www.leguide.com/finance
As one of the leading online shopping guides, LeGuide.com S.A.'s role is both to help online shoppers search for, compare, and purchase products online and to increase e-merchants' visibility, audience, and sales. Strongly successful in France with the sites www.leguide.com, www.leguide.net and www.webmarchand.com, the company is developing internationally along the same lines. The LeGuide.com S.A. network is present in 14 countries and has sites in 9 languages: France, Belgium, Germany, Austria, Switzerland, Luxemburg, Spain, United Kingdom, Ireland, Poland, Italy, Netherlands and, since December 2007, Sweden and Denmark. By the end of 2007, the company was composed of an international team of 69 people. OSEO Anvar has labelled LeGuide.com an “Innovative Company”. LeGuide.com S.A. is listed on the NYSE-Euronext Paris Alternext (under mnemonic code ALGUI, ISIN code FR0010146092).
About dooyoo www.dooyoo.com
Founded in 1999, dooyoo is a company organized under German law, based in Berlin, and held essentially by investment funds that have been financing its development. dooyoo has a workforce of 24 people and a total turnover of EUR 3.6 million for 2007, with an operating result of EUR 0.8 million. As an online social shopping guide, dooyoo has become a major player in Germany and has achieved a significant position in the United Kingdom. dooyoo is active in Germany (www.dooyoo.de), the United Kingdom (www.dooyoo.co.uk), Spain (www.dooyoo.es) and Italy (www.dooyoo.it).