Verkkokauppa.com Oyj Strengthens Position with Walley Deal
Verkkokauppa.com Oyj Strengthens Position with Walley Deal
Verkkokauppa.com Oyj has taken a significant step by announcing the sale of its consumer financing business to Walley, a leading player in payment solutions. The preliminary purchase price for this agreement is set at approximately EUR 34 million, with the final price contingent on the value of the loan portfolio at the closing date. The company expects this transaction to finalize during the latter half of the upcoming year.
Details of the Business Sale
This deal not only involves the sale of the consumer financing business but also incorporates a long-term partnership between Verkkokauppa.com and Walley to enhance payment solutions for its customers. This collaboration is geared towards supporting Verkkokauppa.com’s sustained growth and strategic goals in the competitive market.
CEO Insights
Panu Porkka, the CEO of Verkkokauppa.com, expressed optimism about the benefits this transaction brings to customers. "Diverse financing services are imperative for boosting customer satisfaction and loyalty, and there has been a notable increase in interest surrounding these services. This partnership is crucial for our vision of providing innovative purchasing solutions for our customers," he remarked.
Walley's Expansion Goals
David Lundqvist, CEO of Walley, discussed the importance of this acquisition, labeling it a pivotal moment for both Walley and Norion Bank. Lundqvist stated, "Acquiring Verkkokauppa.com’s established consumer financing solutions accelerates our growth strategy in the Nordic markets. This step not only strengthens our long-term partnership but also advances our mission to expand within the consumer finance and payment sectors in Finland."
Financial Implications of the Transaction
The financial fallout from this sale will lead to a one-time gain of about EUR 3 million, classified as an item affecting comparability. While this gain will positively influence the balance sheet, Verkkokauppa.com anticipates that the overall impact on their results will be minimal. However, the long-term benefits are anticipated to significantly enhance operational cash flow as well.
Customer Contracts Remain Unchanged
It is also important to note that there will be no changes to the existing contractual terms for Verkkokauppa.com’s current consumer finance customers due to this transaction. This consistency aims to assure customers that their existing agreements and services remain intact.
About Verkkokauppa.com
As a pioneer in e-commerce, Verkkokauppa.com has continually placed emphasis on enhancing the customer experience. The company is dedicated to spearheading the transition of commerce to online platforms, boasting Finland’s fastest delivery services and unmatched convenience. They cater to over 1.7 million customers, offering rapid one-hour deliveries and a competitive assortment of products at appealing prices. Verkkokauppa.com maintains a vision to exceed customer expectations and redefine standards in buying and owning.
Founded in 1992, Verkkokauppa.com has been a digital innovator since its inception. The company reported a revenue of EUR 468 million in the previous year and employs a workforce of around 600 individuals, showcasing its impact and presence in the Finnish market. It is also publicly traded on the Nasdaq Helsinki stock exchange under the ticker symbol VERK.
Frequently Asked Questions
What are the main terms of the transaction between Verkkokauppa.com and Walley?
The main terms include a preliminary purchase price of approximately EUR 34 million, with a partnership agreement for future consumer finance solutions.
How will this transaction benefit Verkkokauppa.com financially?
The company anticipates a one-time gain of about EUR 3 million and improved operational cash flow while not significantly affecting its overall results.
What does the long-term partnership with Walley entail?
The partnership focuses on enhancing financing and payment solutions offered to customers of Verkkokauppa.com, supporting its growth strategy.
Will existing customers of Verkkokauppa.com be impacted?
No, there will not be any changes to the contractual terms for current consumers financing customers due to this deal.
What is Verkkokauppa.com known for?
Verkkokauppa.com is known for being an e-commerce pioneer in Finland, providing fast delivery and a vast product assortment to enhance the customer shopping experience.
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