|TopBuy will become a subsidiary of Mnemon's DealsDirect Group, owner of Australia's largest discount online store.|
The move will see DealsDirect gain 200,000 customers, as well as greater efficiencies and scale between the two e-tailers.
Launched in 2007, TopBuy has annual revenues of around $10 million, and imports directly from overseas factories, selling everything from PC gear to fashion and beauty to wine.
TopBuy's ability to ship directly from China was also touted as another benefit for DealsDirect owners, Mnemon.
The acquisition is expected to bring substantial cross-selling opportunities with DealsDirect and an inventory-light model aligned to the company's strategic direction.
The synergies are expected to deliver better value, customer service and product range.
The deal is worth $2.25m, to be paid with $0.325m cash with the balance to be settled in Mnemon shares at a share price of the 60-day VWAP. There's also a small earn out component.
Mnemon CEO Michael Rosenbaum said: "this is just the first step in our ongoing acquisition strategy and we are continuing to look at a range of opportunities in the e-commerce industry."
It's the first acquisition for Mnemon since the reverse listing of DealsDirect in January last.
TopBuy co-founders Peter Xie and Michael Xie will continue in key roles within senior management of the company.
Mnemon shares rose to $1.53 today, up 2%, after the announcement.