InfoSpace, a developer of metasearch products, said that it has purchased assets from Mercantila, a privately-held specialty online retailer, for a purchase of $8m in cash, plus the assumption of certain liabilities, not to exceed $5.9m, in a move to diversify its business model.
InfoSpace said that the acquisition is part of its strategy to expand its online audience beyond search. It plans to build on Mercantila’s drop-ship supplier platform to support InfoSpace’s low asset intensive approach to e-commerce.
Mercantila owns more than 200 specialty stores on the web under a range of domain names and has partnered with more than 1,000 fulfillment partners to supply its products.
Mercantila will operate as a wholly owned subsidiary, under the leadership of Nikhil Behl, its former chief merchandising officer and newly appointed chief executive officer of the subsidiary.
William Lansing, chief executive officer of InfoSpace, said: “Mercantila will provide InfoSpace with a foundational technology platform and represents the first step in our differentiated e-commerce strategy. Through organic growth and development of Mercantila’s current platform, along with other acquisitions, we intend to become a strong e-commerce player.”
