Global Marketplace, the owner of Click Frenzy, acquires GrabOne, online marketplace in New Zealand.
24 Aug 2021
New Zealand consumers may soon have their own version of Click Frenzy after Global Marketplace, the owner of the Australian cyber-sale pioneer, snapped up online marketplace GrabOne for $NZ17.5 million.
GrabOne is one of the largest daily deals and e-commerce sites in New Zealand and sells experiences such as dining and events, travel including holiday and accommodation deals, and products including furniture, food, books, clothing, toys and sporting goods.
Click Frenzy founder Grant Arnott’s Global Marketplace has made its first move overseas.
Global Marketplace, which owns e-commerce events business Click Frenzy, online marketplace Click Central and publisher and e-commerce data platform Power Retail, reached agreement to buy GrabOne from media company NZ Media and Entertainment (NZME) on Monday after raising $NZ17.5 million from Australian investors.
While e-commerce sales have soared during the pandemic GrabOne’s revenues of $NZ10 million have been squeezed by pandemic-related travel restrictions and have been flat for two years. Travel accounts for about 10 per cent of revenue.
“We see a lot of potential in the business,” Mr Arnott told The Australian Financial Review.
“It’s a well run business and we believe with the right investment and right marketing it can see significant growth,” said Mr Arnott, adding that there were opportunities to launch online shopping events such as Click Frenzy in NZ.
Global Marketplace chief executive Nathan Brown said the company was attracted by GrabOne’s consumer database and merchant database and saw an opportunity to leverage its digital and marketing capabilities in New Zealand.
GrabOne has more than 2,400 active merchants, more than 300,000 consumer members and reaches about 2.9 million New Zealanders every week.
“Many of our current partners were already asking if we were going into
NZ,” said Mr Brown. “We will be able to deliver more products and experiences to our combined audience.”
All current GrabOne staff will be offered roles with Global Marketplace.
The acquisition is not subject to regulatory approvals and is expected to be completed by October 31.
The deal will help Global Marketplace boost its sales and customer and supplier base ahead a proposed initial public offering next year.
Founded in 2012, Click Frenzy has 1.7 million members and has been growing at more than 40 per cent a year.
The company recently strengthened its board, appointing RedBalloon founder and Shark Tank investor Naomi Simson and Justin Hind, the chief executive of digital marketing company CHE Proximity, alongside Tanarra Capital principal Anna Shave.