Websites Spark M&A For Consolidation

Online Websites Spark M&A For Consolidation

Online Websites Spark M&A For Consolidation

Spain has been no stranger to M&A activity in recent years as companies across a range of sectors, including banking, telecommunications and renewable energy, have sought to strengthen their financial muscle and increase market share by joining forces.

Now e-commerce is experiencing a similar shake-up as the competition intensifies in a business that is relatively immature in Spain compared to countries like the UK and Germany. The online space is ripe for growth and savvy entrepreneurs are looking to pull resources to enhance their product range and grab a bigger slice of the market.

So which industries are attracting consolidation?

TOURISM, LEISURE IN FOCUS

Spain’s tourism industry has seen a strong revival in the last couple of years and is expected to chalk up a record number of foreign visitors this summer, benefitting from the political turmoil in rival destinations like Turkey and Egypt. And the online tourism and travel business is reflecting this growth.

In the last quarter of 2012, e-commerce sales rose 11.7 per cent in Spain to a record 2.075 billion euros and are on course to post even stronger growth in 2013. Travel and related services were the top e-commerce category in 2012.

The increased demand in the tourism, travel and leisure industries has sparked consolidation amongst online firms.

Earlier this month, the portal Offerum – which provides travel, leisure and wellness services at discount prices – went through with its acquisition of online leisure services provider Planeo from Spain’s largest media group Prisa.  The deal will consolidate Offerum’s leading position in the online leisure sector in Spain, on the heels of its recent buy of travel portal Destinity.

FOOD SERVICES ATTRACT M&A

Spain’s food service industry is feeling the pinch of the economic crisis, and restaurants have had to rethink their strategies for attracting customers, particularly mid-week. Many have signed up to provide special online deals.

The concept of home delivery for fast food like pizzas is by no means new, as modern living leaves little time to cook at home. But the online restaurant takeout business is expanding quickly across the globe, driven by consumers seeking a more varied menu!

In Spain , the industry is gaining traction, and companies are teaming up against a common enemy, paper menus, to enhance the products they can offer their diners and restaurants.

A case in point is portal La Nevera Roja’s purchase this month of EnTuBoca.com.  The deal will enable La Nevera Roja, founded two years ago, to reach an agreement with 75 per cent of the restaurants in the Madrid region that offer take-away service.

For information about potential online M&A deals in Spain, contact corporate law firm Argali Abogados.

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