European online retailers Boxman AB and iMVS.com Plc (Interactive Music and Video Shop) have merged to fill the gaps in their continental customer lists. The new company, valued at $82m, will be based in the UK and named Boxman.com Plc. Swedish Boxman sells CDs and wants to get into the UK, the last major market in Europe for it to establish a significant customer base. It will acquire the clients of UK-based iMVS, which in turn will be able to sell its products across a far wider European marketplace.
Boxman already claims to be the largest online retailer in Europe, but direct rivalry with Amazon.com in the US will not happen for at least 18 months, according to a Boxman spokesperson. Its advantage over Amazon.com and other CD retailers, such as CDNow, lies in its familiarity with the European market and of potential partners.
The company will announce several distribution partnerships next week with Ericsson, Cable & Wireless and EMAP Publications. Customers will be able to press a button on an Ericsson phone to order a top ten CD list. EMAP will offer Boxman products over digital television technology. Boxman made revenue of $9.3m last year, while iMVS recorded $2m.
