Buy4Now, the e-business software specialist and Ireland’s online shopping centre today announced the sale of its US business and a capital restructuring of the company in a deal valued at over $15 million for the shareholders.
The terms of the transaction are summarised as follows:
- Buy4Now’s US business has been acquired by US group MyWebGrocer for an undisclosed cash consideration
- Buy4Now founder and principal shareholder, Ali Murdoch has resigned as Chief Executive and Director of Buy4Now. Ali Murdoch will retain a 10% shareholding in the company and will remain as acting CEO of Buy4Now USA under its new ownership
- Michael Veale, co-founder and Sales Director of Buy4Now has been appointed Chief Executive of Buy4Now
- Post the sale of Buy4Now USA, the company will re-orientate its management focus on its existing portfolio and opportunities in the Irish, UK and European markets
- Executive Directors, Michael Veale (CEO), Kevin Murphy (CFO), Dan Murphy (CTO) and Allen Corcoran ( Professional Services Director) hold a 53% shareholding of the restructured company
- Key original investors, eircom, Superquinn, Grafton Group PLC remain as shareholders in Buy4Now
- Buy4now will continue to provide Hosting Services and support to existing US clients via Buy4Now USA, and will benefit from ongoing contracts with the US company in the provision of project development and other services
Established in August 2000, Buy4Now created Ireland’s first online retail portal (buy4now.ie) comprising leading Irish ‘bricks and mortar’ brands such as Superquinn, Atlantic Homecare and Arnotts. The company quickly expanded its portal services to include 20 of the country’s best known retailers and over 2.5 million products. Since then the company has become Ireland’s largest provider of software and services to online retailers.
As per its stated launch strategy, Buy4Now expanded internationally as an e-commerce software specialist when it entered the US market in 2004, to provide leading edge end to end e-grocery solutions to leading retailers across the US such as A&P Group, Roche Brothers, New Seasons Market and Lunds & Byerlys.
Founded in 1999, MyWebGrocer is based in Colchester, Vermont, USA. MyWebGrocer provides leading-edge eCommerce and eMarketing solutions to the grocery and consumer packaged goods industries.
Commenting, Ali Murdoch, former Chief Executive of BuyNow said: "The sale of Buy4Now USA represents particularly good value for Buy4Now and provides an excellent result for all of our shareholders who have seen a strong return on their initial investment. It is particularly gratifying to note that Buy4Now has consistently delivered on its strategic ambitions, its profit targets and development goals, and that as a result, the key strategic investors such as Grafton Group PLC, eircom and Superquinn are remaining committed to their investment in the restructured company. I have worked closely with Michael, Dan, Allen and Kevin over the past eight years and wish them every success moving forward with the new organisation. I will be maintaining an active interest as an investor, and have every confidence that the new management team will enjoy continued success in the future."
Buy4Now’s new Chief Executive is Michael Veale, a co-founder of the Company in 2000, has considerable experience in working with retailers in the IT industry, having been a senior account manager with ICL before joining Buy4Now. As Sales Director of Buy4Now, he has led the Company’s development and enhancement of the buy4now.ie portal, and its expansion into e-business software services.
"The sale of Buy4Now USA allows management to clearly focus on our existing large portfolio of clients and to seek opportunities to expand our e-commerce software and services offering in Ireland and in European markets. The new management team are excited by the challenge and look forward to growing the business. We believe we have the people, skills and product set to consolidate our position as the leading provider of e-commerce solutions in Ireland and also focus on growth in the UK and European Markets," said Michael Veale.
Richard Tarrant, CEO of MyWebGrocer commented: "The purchase of Buy4Now USA is an important development for MyWebGrocer in our growth in the US grocery space. Buy4Now is a well run operation with excellent eGrocery software and a fantastic customer base. We look forward to working with Buy4Now Ireland in an ongoing relationship into the future which will include hosting and joint development projects. We wish the new management team every success and look forward to enhancing the Buy4Now Ireland product offering in Europe with some of our own world class products"