Aussie tech e-tailer adds 200,000 clients in buyout

Mnemon expects to grow its turnover by 20 percent and add 200,000 customers through the acquisition of TopBuy.

Publicly listed Mnemon (MNZ), which last year was the subject of a reverse takeover by Deals Direct, will spend $2.25 million on TopBuy, which bills itself as one of Australia's biggest online retailers.

According to TopBuy, it is "a wholly Australian-owned and operated online bargains and discounts mega store."

Its range includes computers and digital cameras as well as fashion, home and childrens products.

TopBuy was founded in 2007 by Peter Xie and Michael Xie. It has "robust sourcing infrastructure in China and Hong Kong, enabling direct order fulfilment to consumers in Australia".

According to Mnemon's statement to the ASX, the deal will add a database of 200,000 active customers and add $10 millions of sales in the 2015 financial year.

This would raise Mnemon's revenue by 17.6 percent from the $56.8 million it posted in the 12 months to June 2013.

Another advantage will be distribution capabilities out of China.

Mnemon interim CEO Michael Rosenbaum said: “The acquisition of TopBuy is the first for MNZ since the reverse listing of DealsDirect on the ASX in January 2014.

"The integration of TopBuy is expected to deliver significant cost synergies and cross-selling opportunities with DealsDirect. This is the first step in our ongoing acquisition strategy with  MNZ continuing to look at a range of opportunities in the e-commerce industry."