Online games and computing services provider GigaMedia has entered into a purchasing agreement to acquire a 70 percent stake in global cosmetics e-commerce company Strawberry Cosmetics for US$93.1 million. The deal is subject to shareholder approval and is expected to be signed off at GigaMedia’s Annual General Meeting on August 5 and completed by the third quarter of 2015.
Hong Kong-based Strawberry Cosmetics has posted annual yearly sales revenue of US$200 million for the past four years, and boasts a customer base of three million shoppers worldwide. The Oceania, European and US markets are responsible for the lion’s share of its business, with increasing contributions from Asia.
The deal will allow Taipei-based GigaMedia to tap into the lucrative beauty e-commerce market, as well as providing the IT provider with an opportunity to diversify its overall business risks and broaden its portfolio.
Meanwhile, Strawberry Cosmetics is poised to benefit from GigaMedia’s local connections in China, Japan and South Korea as it seeks to build business across Asia, as well as take advantage of GigaMedia’s expertise in online and offline marketing and technology to enhance its future product strategy.