X5 Retail Group completes IT Business e-commerce acquisition

Russia-based X5 Retail Group has completed the acquisition of an additional 31% stake in IT Business, which operates bolero.ru and 003.ru online stores. The purchase brings X5’s total ownership interest to 82% of IT Business, with an option to acquire the remaining part of the business by 2014. In October 2009, X5 entered a joint venture agreement with the owners of online stores www.bolero.ru and www.003.ru. According to the agreement, X5’s partners in this joint venture contributed rights to the internet properties as well as their key employees and essential business infrastructure including IT equipment, call-centre, software, databases and leasing rights to a distribution centre. For Q1 2010, IT Business reported net sales of USD4 million, 40,000 customer visits and the average ticket of USD126.