Extreme Digital, eMAG to merge


E-tail company Extreme Digital is set to merge with eMAG始s Hungarian subsidiary to form one of the largest players on the CEE e-commerce market, according to an announcement by Extreme Digital at a press conference attended by the Budapest Business Journal on Thursday.

A new company will be created as a result of the fusion of online electronics retailer Extreme Digital with eMAG Hungary, which belongs to the South African Naspers Group. The center of the new company will remain in Budapest, and all international expansion plans will be controlled from Hungary as well.

Extreme Digital will hold 48% of the new company, with eMAG始s Hungarian unit holding 52%, according to state news agency MTI.

"My logic is telling me that keeping both brands alive is a good idea," said Bal谩zs V谩rkonyi, head and co-founder of Extreme Digital, regarding plans for the future use of brand names.

Both V谩rkonyi and co-founder Gyula Kelemen are set to take leading roles at the helm of the company. V谩rkonyi told reporters that the transaction has been submitted to the relevant competition authority and, if approved this week, will be closed in Q3 2019, with the merger to be fully completed sometime next year.

Extreme Digital closed a strong year in 2018, posting HUF 36 billion in revenues. At the moment, the company is present in eight countries, and has some 100,000 available products. The company has a 10% share of the Hungarian e-commerce market, with 16 shops complementing its online system. V谩rkonyi noted that orders originating from outside Hungary already account for 20% of profits.

"With the market knowledge of Extreme Digital, the logistic capacity and professional web system of eMAG, and the financial backing of the South African Naspers parent company, we can become the decisive commerce company of the region," V谩rkonyi asserted. "The company created via the fusion will be able not only to offer better prices but also higher-quality services to its customers. Thanks to our combined forces, Budapest may become our region始s e-commerce center," he added.

"In international e-commerce, size is a decisive aspect," according to Catalin Dit, head of eMAG Hungary. "Henceforth, the leaders and owners of the two companies recognized that by combining our forces, we can become more successful on the Hungarian market, and gain a foothold on the global competitive market."

The Budapest office of Dentons was the legal advisor to Extreme Digital in the transaction.


Croatia Paying MOL USD 235 mln Award Energy Trade

Croatia Paying MOL USD 235 mln Award

Gov't Guarantees on Liabilities Climb Over 9%聽of GDP in 2021 Government

Gov't Guarantees on Liabilities Climb Over 9%聽of GDP in 2021

OXO Technologies Looks for New HQ Elsewhere in EU Innovation

OXO Technologies Looks for New HQ Elsewhere in EU

Hungary Adopting Performance-based Financing for Arts Art

Hungary Adopting Performance-based Financing for Arts


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.