Allegro acquired by Private Equity partnership
eBay and Alibaba have been outbid in their efforts to acquire Allegro, the largest ecommerce marketplace serving Poland. Instead the company will be acquired by private equity firms Cinven, Permira and Mid Europa.
Paying $3.253 billion values Allegro’s 20 million registered users at just over $162 dollars per head. Comparing that with the £25 million Rakuten paid for Play.com at about £3.50 for each of 7 million active users and the perceived value of Allegro becomes obvious. Allegro is a burgeoning successful marketplace with real potential.
It’s a bit of a blow for eBay, who already compete against Allegro in Poland. If eBay (or Alibaba or Amazon) had managed to acquire Allegro it would have given them a foot hold not just in Poland but across Eastern Europe.
The Allegro marketplace has total sales of more than 850 thousand items a day. The company employs 1,275 people across five offices in Poznań, Warszawa, Toruń, Wrocław and Kraków.
If you’re still wondering if you should sell on Allegro, earlier this year the experts in international trade at Pentagon said “Polish ecommerce is outpacing the rest of Europe, with 23% growth year-on-year compared to 18% in the rest of the single market. Moreover, the Allegro marketplace accounts for more than 50% of the Polish ecommerce market making it the number one destination for British brands looking to export to the country”.