Rocket Internet-branched Home24 has successfully acquired online designer furniture retailer Fashion For Home. Both companies will merge under one roof, but will still have their own company identities.
Home24 is a European online furniture store founded by Rocket Internet. The company has acquired yet another online furniture store known as Fashion For Home. The German online designer furniture retail store's founders Christoph Cordes and Marc Appelhoff will stay as part of the European online furniture store's management team, while both brands will remain a separate entity.
Rocket Internet was an original supporter of the online designer retail store. The German internet company disposed its shares during a partial 2012 exit. The Internet company founder Oliver Samwer was known as a bully when it comes to e-commerce related to furniture, and it came as a surprise when the Internet company partially closed.
The acquisition of Home24 for Fashion For Home is unlikely a success story for other company investors like Holtzbrinck Ventures and Acton Capital Partners, not unless the Ikea-like company pulls off its IPO plans that has been in the rumours.
The European initial public offerings are picking up reputations with regard to delaying tactics. Some of the companies that had trouble with IPOs are music streaming site Deezer and Rocket Internet's HelloFresh.
Chief Executive Officer of Home24 AG Domenico Cipolla acknowledged that the acquisition of Fashion For Home is a complement for strengthening its leadership. "Our priority is to turn this company into a really long term-orientated, sustainable, profitable company... an IPO for us at this point in time is not an option," Cipolla said.
Both companies are working to revolutionize the way people purchase household furniture. Also, their goal is to become the global leader in online retail furniture.
Home24 operates in seven European market cores like Germany, Italy, Belgium, Switzerland, Austria, Netherlands, France, plus a Brazil subsidiary. Fashion For Home will integrate with the Home24 platform to benefit the online furniture store's technology, international marketing, and powerhouse fulfilment.