Enjoei announced on Tuesday the purchase of the Elo7 craft platform, from the North American Etsy, for an undisclosed amount, according to a statement to the market.
As of 3 p.m., shares of the e-commerce company are up about 14% after the announcement. At the same time, the Ibovespa, an index the company is not a part of, fell 0.2%.
According to Enjoei, Elo7 accumulated gross sales value in the GMV concept last year of 500 million reais in 3.6 million transactions, with 1.6 million active buyers and 50,000 sellers.
“The acquisition expands Enjoei’s professional sales force base, accelerating our business expansion,” the company said. According to Enjoei, in addition to expanding the sales base, the agreement will enable the optimization of operating leverage and costs and the dilution of expenses, as well as strengthen the product portfolio.
Enjoei specified that the transaction price does not imply the need for approval by the company’s shareholders’ meeting.
XP analysts view the transaction as positive, as it is expected to accelerate Enjoei’s GMV growth to 40% for the year, adding a new growth avenue.
However, analysts maintained a neutral rating on the stock “due to a still challenging macro environment,” and given the lack of financial information on Elo7 for a more in-depth assessment, they said.
“The key synergies brought about with the acquisition are the expansion of the professional sales force base, operating leverage and the creation of a new growth path,” as reported by Danniela Eiger, Gustavo Senday and Thiago Suedt.
Source: Terra
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