Three independent “daily deals” -sites, Cherry.ee, Beta.lt, Grupinis.lt, have today announced a merger to create the largest internet coupon site in the Baltics. The newly created company has over a 50% market share in the region and had a turnover of 0.94 million euro in March 2011. The three companies were all owned by their founders and angel investors. The merger was completed through a stock swap.
We’ve been expecting this sort of activity to take place and it’s great to see companies with similar interests partner to improve customer experience.
Each of the three companies were launched during the summer and spring of 2010. Thus they’ve become the fastest growing online companies in the region in terms of sales in the short time span they’ve been live.
Together the companies attract more than 500 000 people each month to visit and take part in their deals. 70% of the purchases are made by women. Overall, 1300 merchants across Estonia, Latvia and Lithuania have used the sites to increase their sales.
“We were very quick to find common language with our Lithuanian partners as we share common background and passion to this business. This is true merger of the equals,“ said CEO of Cherry Media Priit Tomp.
Some other interesting statistics from the newly merged company are that it has sold 424 000 vouchers during the last 12 months, saving over 6,3 million euros for the customers. In some cases, Cherry has been able to sell 20% of the merchant’s annual business volume in one day.
“We are on course to become the largest Baltic internet company in 1-2 years time. We have already passed Delfi, if compared by turnover,“ said Andres Susi, the co-founder of Cherry Media.
According to the press release announcing the merger, the companies will continue to use the same brands after the merger. Also, the new board will consist of Allan Martinson, Priit Tomp, Andres Susi, Aldas Kirvaitis and Ilja Polivanovas. The company employs 45 people across the Baltics.