GigaMedia Limited, an online games and computing services provider headquartered in Taipei, Taiwan, has announced that it has entered into a share purchase agreement to acquire a 70% equity interest in Strawberry Cosmetics Holding Limited, a global cosmetics e-commerce company. The deal is said to be worth approximately $93.1 million.
 
Strawberry Cosmetics is an online distribution and retail platform of beauty products, which owns and operates the website “StrawberryNET.com” and the related mobile application. It has a comprehensive sales and distribution network covering the major countries worldwide, with increasing contributions from the fast growing economies in Asia. StrawberryNET.com is translated into 38 languages, and has a customer base of over 3 million customers worldwide. Strawberry Cosmetics has also established a global sourcing network of a comprehensive range of beauty products with more than 700 brands and 30,000 stock keeping units.
 
Consolidated sales revenues of Strawberry Cosmetics and its subsidiaries in the recent four years have been over $200 million (U.S.) per annum. The revenue contribution is attributable mainly to the Oceania, U.S. and Europe markets. The Asian market still has considerable potential to grow. GigaMedia says in this respect, Strawberry Cosmetics will benefit from their existing marketing resources for further expanding its Asian market and will integrate GigaMedia’s technology expertise for enhancing its future product strategy.
 
GigaMedia says it sees potential significant synergies with Strawberry Cosmetics from leveraging its information technology, online and offline marketing, as well as its local connections in various Asian countries including China, Japan and South Korea.
 
The completion of the transaction is subject to the GigaMedia’s shareholders’ approval at a general meeting to be held on August 5, 2015 and other customary conditions. The transaction is expected to be completed in the third quarter of 2015.