UK-headquartered online auction house QXL is to proceed with the acquisition of its main European competitor, Ricardo of Germany, albeit for substantially less that the amount originally agreed of 42.6 QXL shares for each Ricardo share – now reduced to 34 shares.
The deal was put on hold earlier this month [WAMN, 11-Aug-00] when Ricardo reported revenue and gross auction value during April-June down by about 20%, compared to the first quarter of the year.
Nevertheless, QXL's chief executive Jim Rose said he still believed the deal will result in a "strong and competitive" business platform from which to achieve the strategic and financial goals of both companies.
Trading as QXL ricardo, the merged company will be Europe's largest online auction site with over two million registered users in 13 European countries.
News source: BBC Online Business News (UK)