Hungarian owners buy out Steinhoff stake in Extreme Digital

Retail

The Hungarian owners of online consumer electronics retailer Extreme Digital have reacquired a 50.4% stake in the company from South Africaʼs Steinhoff International, Extreme Digital managing director Balázs Várkonyi said today.

Steinhoff International is currently embroiled in an accounting scandal, which affected Extreme Digital, even though it is not an integrated member of the group, Várkonyi said, as cited by national news agency MTI. Várkonyi declined to reveal the price of the acquisition, which has been cleared by the Competition Office (GVH).

The companyʼs finances are stable and growth could be in the double digits this year. Extreme Digital wants to continue its expansion abroad while seeking to preserve its market share domestically, Várkonyi added. Net revenue was HUF 35 billion last year, up from HUF 33.3 bln in 2016. Nearly half of the 2017 revenue came from purchases at brick and mortar stores.

Várkonyi founded Extreme Digital with Gyula Kelemen in 2001. Steinhoff International acquired a majority stake in the company in 2015. Extreme Digital has 16 stores in Hungary and is present in eight countries.

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