Internet service company Rakuten and online retailer Play.com have announced that they have entered into an agreement that will see Rakuten acquire Play.com for about £25 million.

Internet service company Rakuten and online retailer Play.com have announced that they have entered into an agreement that will see Rakuten acquire Play.com for about £25 million.

Rakuten will purchase 100 per cent of outstanding Play.com stock from its current shareholders.

The acquisition represents a significant step in Rakuten’s continued European and global expansion, and marks the company’s third acquisition in Europe, joining French e-commerce pioneer PriceMinister, acquired in 2010, and the expanding German online shopping mall, Tradoria, which joined the Rakuten in July of this year.  

Rakuten now operates e-commerce businesses in ten countries globally, including Japan.

Hiroshi Mikitani, chairman and CEO of Rakuten, comments: ‘The UK market is one of Europe’s largest and most mature e-commerce markets. Play.com is not only a pioneer in the market, but also one of the UK’s most successful e-commerce businesses.  

‘We aim to leverage our e-commerce strength and experience to further expand and develop Play.com’s business model and channel its loyal user base, merchants, and deep product offerings into Rakuten’s global e-commerce network.’

The UK’s e-commerce industry is the largest in Europe and is expected to exceed $58.0 billion by 2014, by which time it is expected to have 55 million online users.