Another significant step in implementing the online strategy
Media-Saturn, Europe's leading consumer electronics retailer, has taken over redcoon, one of the leading international online retailers of electronic products. A corresponding contract was signed today. With the acquisition of redcoon, the Media-Saturn Group is further expanding its online strategy. By taking over redcoon, the company is now adding a pure player to its portfolio, which also includes a multichannel concept for Media Markt and Saturn. This dual strategy – multichannel plus pure player – means that in the future the Media-Saturn Group will be able to transfer its leading position in Europe from fixed-location retailing to the rapidly growing online segment. The acquisition is subject to approval by the antitrust authorities. The parties have agreed not to disclose the purchase price.
Horst Norberg, CEO of the Management Board of Media-Saturn-Holding GmbH, stated: "redcoon fits perfectly into Media-Saturn's portfolio. The acquisition provides us with access to the pure player segment in Germany and nine other European countries. The company is already a well-established and reliable player in online retailing and in the future will neatly round off the online activities of our retail brands Media Markt and Saturn as a separate unit. This means that redcoon is an important part of our online strategy. We would like to welcome all redcoon employees to the Media-Saturn Group and look forward to working together in the future."
The new dual online strategy will add pure play to the mix, which also includes Media Markt and Saturn's multichannel concept. As far as the Media Markt and Saturn brands are concerned, multichannel offers their customers as many points of contact as possible while at the same time linking fixed-location retailing with pure play, thus enhancing it. In the future, customers will be able to make purchases and utilize services at both fixed-location Media Markt and Saturn stores and online.
On the other hand, redcoon, as a pure player, will only operate in the online segment. The company will continue to be managed by its founder Reiner Heckel as an independent subsidiary of the Media-Saturn Group and will be in competition with Media Markt and Saturn. "With its strategy, redcoon has very successfully established itself on the market and with customers. As far as redcoon customers and employees are concerned, nothing will change with regard to the company's positioning, business strategy and price strategy", said Dr Rolf Hagemann, CFO and Vice Chairman of the Management Board of Media-Saturn-Holding GmbH, and responsible for Mergers & Acquisitions.
Redcoon was founded in 2003 in Aschaffenburg, Germany, and sells approximately 24,000 different products covering the categories entertainment electronics, computers, cameras, telecommunications, household appliances, books, DIY and gardening, sports and fitness, music instruments and accessories exclusively via the Internet. The highly-profitable and fast-growing company operates in ten European countries and is today one of Europe's leading independent online electronics retailers with more than three million customers and revenues of 354 million euros in the 2009/2010 business year. The redcoon Group currently employs 485 people.