Former Smart50 finalist MyDeal acquired by Woolworths in $243 million deal

sean-senvirtne-my-deal

MyDeal founder Sean Senvirtne. Source: supplied.

Supermarket giant Woolworths plans to acquire 80% of ASX-listed online marketplace MyDeal in a deal that values the 10-year-old company at $243 million.

MyDeal was founded in 2012 by Sean Senvirtne, who bootstrapped the business in its early years and grew it into one of Australia’s leading retail marketplaces. Senvirtne will retain a 20% shareholding in the business, which will be de-listed from the ASX, and continue to lead the business under its new owners.

MyDeal listed on the ASX back in October 2020 at $1 a share. The Woolworths deal is based on an offer price of $1.05 a share, via a scheme of arrangement, which compares to the company’s most recent price of 65 cents.

MyDeal specialises in furniture, homewares and everyday products, offering more than 6 million products from around 1900 sellers.

The business, which featured on the Smart50 in 2016 and 2017, now has in excess of 1 million active customers and in the 12 months to March 31, recorded gross transaction value of $260 million.

In a statement, Woolworths CEO Brad Banducci said the acquisition of MyDeal will “materially expands our marketplace capabilities, especially in general merchandise”.

“The addition of MyDeal to Woolworths Group represents a further step towards delivering a more holistic customer experience in food and everyday needs,” he said.

Senvirtne said he is “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 e-commerce, supply chain, retail, loyalty and more.”

Senvirtne holds just under half of MyDeal’s shares, at 47.3%, and he said in a statement he will vote in support of the sale, which has been unanimously recommended by the company’s board.

The founder has also given Woolworths a call option over 19.9% of his shares, while fellow shareholders, Silver Globe and Aavasan, which hold 28.6%, also plan to support the deal.

The acquisition is subject to regular approval processes, including approval by shareholders and the Australian Competition and Consumer Commission.

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